As companies shift operational processes to the digital realm, any failure to streamline, integrate and consolidate will create technological bottlenecks that might not be revealed for months or even years. In a private equity acquisition, hidden digital disorders can quickly turn into landmines that destroy any chance of a high return on investment – as well as hinder the journey to digital transformation.
That’s why it’s critical to scrutinize every single aspect of the managed company’s business, delving deep into the complete value chain prior to acquisition to understand key areas of technological impact and deficit. Time is often of the essence during acquisitions, but a baseline technology audit can be completed in just seven to 10 days.
Firms should think of a technology audit as analogous to a home inspection. You’d never buy a house without a thorough inspection for any hidden flaws or pricey fixes, and you should never invest in, buy or merge with a company without a diagnostic dive into these eight areas of the business.
These eight areas touch every single part of an investment: marketing, sales, finance, procurement, supply chain, operations, logistics, services and more.
There are clear advantages to learning this information early, but a technology audit is valuable no matter where a private equity firm is in the acquisition process. If there are any operational potholes or technological flaws in any one of these areas, it’s going to negatively impact the financial outcome of the private equity firm’s investment, as well as impede the firm’s own digital transformation.
The only way to reliably deliver on the PE firms investment horizon is by making strategic improvements across the entire value chain – and proven technology audit methodologies guided by the experts can help firms maximize their ROI and become a player in the digital economy.
All you minimally need are seven to 10 days to evaluate the technological health of your potential investment. Learn more about out JointStrike service by contacting us today.