Let’s face it—navigating the digital world isn’t always second nature for private equity professionals. But here’s the thing: there’s a clear link between digital optimization and enhanced EBITDA. We’ve even written about how small tweaks to digital assets—like webpages, landing pages, ads, and blog posts—can drive big results for your portfolio companies.
Today’s focus? Site speed.
Yes, it’s exactly what it sounds like: how quickly your website loads for visitors. But here’s what might surprise you—site speed has a direct impact on your portfolio companies’ bottom line, including EBITDA.
Consider this:
Translation: A slow site isn’t just annoying—it’s a deal-breaker for customers and a missed opportunity for revenue.
Let’s look at a concrete example of how site speed can affect the EBITDA of your portfolio companies. Imagine your firm has invested in a company with traditional performance that looks like this:
Focus on the 4% purchase conversion rate, which site speed influences. If the speed of your site slows, the purchase conversion rate falls. If the speed of your site accelerates, the purchase conversion rate climbs.
For example, a site-speed-related increase to a purchase conversion rate of 4.1% also increases EBITDA by $14,000 to $474,000. A jump to 5% increases EBITDA by $140,000 to $600,000. A site-speed-related decrease to just 3.9% lowers EBITDA by $14,000 to $446,000. A decrease to 3% lowers EBITDA by $140,000 to $320,000.
Several culprits could be dragging your site’s speed down. Here are the usual suspects:
Identifying the root cause of slow site speed is crucial. Tools like Google PageSpeed Insights and Pingdom can help your portfolio companies’ marketing teams pinpoint problem areas and develop effective solutions quickly.
Using the tools above, you can address site speed issues efficiently. Here are five of the most common fixes:
For bigger issues, it’s worth partnering with a skilled developer who can fine-tune your site’s code and make it as fast and efficient as possible. As we’ve discussed, faster sites contribute to better user experiences—and directly impact EBITDA for your portfolio companies.
In today’s digital-first world, even minor website improvements can lead to major gains in revenue and EBITDA. As private equity professionals, embracing these optimizations isn’t just about improving digital assets—it’s about driving tangible results on the balance sheet.
A faster website today could mean a stronger bottom line tomorrow. It’s that simple.
by vector research partners.