Introduction
Despite the Federal Reserve’s decision to cut interest rates in September, longer hold periods for portfolio companies have led private equity firms to place a greater emphasis on their ability to drive revenue growth and margin improvements. As potential buyers increasingly value portfolio companies—based in part on their technological capabilities—private equity firms are expecting significant revenue and margin results from their product and technology transformation efforts.
To achieve such results, private equity firms will need to invest in the right AI/ML technologies, implement savvy product transformation strategies that address potential revenue and margin gaps, as well as enhance their exit strategies.
Many are already executing cross-functional evaluations and transformations in ERP planning tools, product and cloud strategies and AI/ML solutions.
This white paper highlights some leading strategies and key drivers in these critical areas. It also provides insights from MorganFranklin Consulting to inform private equity firms’ expectations and strategies heading into 2025.
