Drive Private Equity Value Creation in the Investment Lifecycle

Amidst economic volatility, escalating competition, and heightened stakeholder demands, private equity operating partners need an effective value-creation strategy.

In the face of such uncertainty, an innovative method of value creation in private equity that quantifies the potential upside and the associated costs at every deal stage becomes the linchpin to success.

Today, more than ever, companies rely heavily on their technology stack. This intricate layer is challenging to navigate. Private equity operating partners skilled in dissecting technology and pinpointing critical issues at every deal stage find themselves on the pathway to success.

Invest: The Crucial First Step in Private Equity Value Creation

Private equity operating partners need visibility pre-acquisition. This aids in understanding the risks and ensuring value investing in private equity is maximized. A thorough static code analysis helps in determining the true economic worth of a target’s digital assets, strengthening their negotiation position.

Know What You Are Buying

Beginning their value creation strategies early, a private equity team, much like the finance team, will embark on their search for value before a deal. They will conduct a comprehensive audit of a company’s software at the source code level. Such an analysis down to the code lines reveals hidden risks and opportunities crucial for an effective value creation plan in PE. IT Due Diligence includes:  

• Comprehensive code scanning with evaluations of technical debt and maintenance cost projections.  
• Technical Knowledge Dependencies and Productivity Analysis.  
• Functional and non-functional interviews complemented by product demos.
• Technical documentation assessments and technology risk profile reviews. 
• Software security and privacy audits, ensuring no legal or copyright liabilities. 
• A validation of the existing architecture’s potential to support growth.