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How EY can help
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Value creation is at the core of every transaction investment thesis. Our business is organized, resourced and led to help private equity firms transform companies and increase their ability to create more value across their portfolio.
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Although some changes are more likely to stick than others, this current period of profound upheaval means that businesses are under pressure to make digital a top priority. Activating that transformation — while already important before the pandemic — has now become a core component of the value creation agenda. The time has come for PE to embed a digital strategy throughout the deal cycle — from origination and due diligence, right through value creation and exit — as well as within the infrastructure of the firm itself.
Today, an organization’s digital agenda should be owned by the CEO. The pandemic has exposed organizations that lack strong digital capabilities, relegating them to the sidelines as their savvier competitors’ foresight delivers measurable business benefits and attractive returns for investors.
This article examines three areas where digital can help PE drive transformative growth:
- Upstream: helping GPs originate deals, identify targets ripe for growth and digital adoption, and carry out due diligence pre-investment.
- Midstream: helping PE funds be better connected to their portfolio companies and operate more effectively.
- Downstream: helping both general partners (GPs) and portfolio company C-suites create value.