As private equity firms prepare for 2025 and 2026, their focus on optimizing portfolio companies will increasingly center around technology, product and AI/ML enhancements. These areas will drive consistent margin and revenue improvements, making portfolio companies more resilient and attractive for exits.

As potential buyers increasingly evaluate companies based on their technological capabilities, private equity firms are counting on significant gains in both revenue and margins from product and technology transformations. Establishing a pressure-tested product roadmap, transitioning to a cloud-based infrastructure, upgrading ERP systems and effectively integrating AI and ML capabilities will drive value creation and set portfolio companies up for success.