Ann: KPG FY23 Full Year Results Commentary, page-13

Trading at +54 times and bottom line isnt growing, cant suck any material costs out. What opportunity is left of the table for a PE firm? Cant sell any equity stakes as they only sell in private market for a portion of the current implied value of KPG. Only option is to continue rollup strategy and hope there is someone at the end of the process to exit. If they are going to do that they may as well do their own rollup strategy without KPG because they can buy firms for 1 times rev not +54 times (plus a takeover premium) NPAT.

As a basic starting point, the CEOs rem needs to be linked to NPAT, not revenue. S/Hs may get a different strategy and outcome. He deliberately did this based on his knowledge of the economics of accounting firms, otherwise he would have aligned his incentives with what is important to shareholders.