Private Equity Pricing Realization Curve

Track a commercial price action through staged customer repricing, contribution, invoicing, collection, and supplier-payment timing to see when the planned economics actually reach revenue and cash.

About this interactive

The analysis converts a commercial price action into four repricing cohorts: immediate, Day 30, Day 60, and a residual Day 90 cohort. Net price realization determines the incremental revenue each cohort produces after it becomes effective. Delivery or input-cost pressure begins independently on Day 0, while invoice, collection, and supplier-payment terms determine when the incremental economics reach cash. The result separates fully effective price uplift, revenue actually recognized inside the horizon, contribution after cost pressure, and cash realized after timing. No external pricing benchmark is imposed. The view supports pricing and cash review within our Private Equity FP&A practice.

Net realized price5.1%Announced movement × entered realization
Recognized price uplift$388K63.3% of fully effective uplift
Net contribution in horizon$200KContribution positive on Day 31
Net cash contribution$24KCash positive on Day 81
Uncollected price uplift$207KRecognized uplift still outside cash at horizon end

Realization over time

From commercial price action to contribution and cash

The curve keeps the fully effective price path, cohort-based revenue recognition, contribution after cost pressure, and incremental cash on the same time axis.

Fully effective price uplift Recognized price uplift Contribution after cost pressure Net incremental cash

Customer repricing cohorts

Where the commercial lag enters the financial result

Each cohort begins generating price uplift only after its effective day. Cash arrives later by the entered invoice and collection lag.

CohortRevenue shareEffective dayActive daysRecognized upliftPrice cash collected

Decision thresholds

What keeps the price action contribution-positive and cash-positive

The realization threshold solves for the minimum net realization needed to offset entered cost pressure by the end of the horizon. The collection ceiling shows the longest customer term that still leaves incremental cash nonnegative by that date.

Entered net realization85.0%Share of announced price movement reaching selling price
Minimum realization for contribution41.1%Entered realization is above the threshold
Collection ceiling for horizon cash35 daysCurrent collection terms: 30 days

What the interactive shows

City Shift Finance

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