Key Takeaways
Enterprise Resource Planning & Technology Transformation
As portfolio companies grow rapidly through acquisitions, they will need to transition from legacy systems or near end-of-life ERP versions to more advanced technology like NetSuite, SAP and OneStream to improve scalability and reporting ahead of an exit to justify prevailing deal multiples.
Pressure-Tested & Cloud-Enabled Product Strategy
Many portfolio companies overlook a true product modernization process after the initial acquisition by their private equity firm. A strong product strategy requires annual pressure-testing of the existing product roadmap to ensure sustained revenue and margin growth. Doing so creates product scalability, improves gross margins, and helps enhance product capabilities.
Artificial Intelligence/Machine Learning
Intelligent use of AI/ML for targeted use cases including code review, due diligence and finance processes is becoming a key differentiator for portfolio companies considering a potential exit. The benefits for early adopters include freeing up about 10% of their resources for add-on processes, enabling a larger deal funnel at no extra expense.
