August | 2020

In the end, there’s only so much low-hanging fruit and every one of your competitors already knows where it is and how to pluck it. That’s why the best-performing PE companies are pushing to be much more creative.



Reinvent for the future

Optimize for the past

Embrace a robust cloud platform strategy

Hold on to your legacy assets

Map out your entire technology infrastructure, both internal and with partners

Dismiss the tech infrastructure as “just the plumbing”

Aggressively weed out “inherited inefficiencies”

Forget that combining inefficient companies inevitably creates a tangle of redundant and inefficient tech and processes

Go asset-light: shed non-core IT assets and/or back-office operations

Ignore substantial recurring cost savings that often lurk in the dark

Consider a shift to online commerce

Assume only existing sales channels can drive significant revenue

Create online digital marketplaces to expand your portfolio company’s geographic reach and service clients worldwide

Assume the company cannot expand its total addressable market

Create new buying experiences for customers based on AR/VR technologies

Assume buyers will buy the way they did before the pandemic

Embrace new global digital-based supply chains

Settle for more aggressive terms with existing vendors in the supply chain

Look for value-creation in IOT and sensor-data analytics

Overlook substantial data assets the company may create in its normal course of business that may not be captured today

Monetize in “passive-IP”

Ignore hidden assets that could be of potentially much more value to someone else

Seek investment opportunities in sleepy industries that have good fundamentals but have not seen innovation in a long while

Miss out on undervalued “ugly ducklings”

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The New Private Equity: Creating Value Quickly and Reliably Through Digital Transformation