This has been the year where many private equity firms started adopting robotic process automation at scale in their investment theses. After the first six months of the year, there are a couple of best practices emerging from our engagements in private equity:
#1 Start with finance to gain experience […]
Robotic process automation (RPA) also called Digital Workforce (DWF) software takes the mundane repetitive tasks and automates them to free up human workforce for more fulfilling jobs. Increasingly the types of tasks move beyond data entry and reconciliation to more cognitive tasks like process analysis, reporting, and even basic decision making that fit predefine tolerance […]
Planning is a risk reduction tool, not a value creation one. To create value, you have to have real commercial interactions in the market. Market feedback better informs strategy than brainstorming sessions ever will, yet companies may pay millions for strategy consultants but not the same amount for limited product experiments.
A friend of mine […]
I had an interesting and unexpected debate on the sidelines of a private equity conference last week in London. It was fascinating because the topic was automation and the protagonist, a hedge fund manager.
For years there have been arguments in various corners of digital advocacy about the future of digital enterprises comprised of mostly […]
In recent years many PE operating groups noticed that acquired companies already had better processes and leaner operations than a decade earlier, especially in larger enterprises. While sourcing programs and improved sales effectiveness still provide benefits, many targets already have good procurement disciplines and most run a form of CRM or various e-commerce tools. More […]
The number of public companies have declined 20% in the last 10 years. This trend continues as more companies go private. The number of private equity deals are at an all time high and so are valuations. There is a massive amount of dry powder waiting to be invested as pension funds keep pouring […]
Technology partnerships rarely fail due to lack of technical or project management skills. Having spend most of my career in business development (partnership development) roles, I noticed certain patterns beyond the textbook answers on success of strategic partnerships. I hope noone needs to be reminded any more for the need of an executive sponsor or […]
2017 was another watershed year in Private Equity. Almost all the buyout fund capital growth happened in megafunds ($5B and above) and valuations continued to rise to record heights (15 times EBITDA). There ismore capital available than attractive targets at those valuations. At the same time strategic buyers got more active and also introduced record […]
For a good decade now most PE operating teams have gotten very savvy leveraging technology to enhance the investment thesis. Most started by predictive spend analytics to consolidate suppliers, improve contract performance and in general better understand drivers of drain on EBITDA. Depending on the scope of the operating team, many got deeper into the […]
We recently completed some analysis of enterprise software purchasing trends in mid-market and large enterprise businesses. We looked at industry data from the last 7 years and came to a few interesting insights. Private Equity has been known to be conservative in IT investments. As our data shows, as PE becomes a larger part of […]