Digital Diligence Solutions Critical for Private Equity Firms to Accelerate Value Post Transaction

calendar iconSeptember 2, 2022

As industries mature in a rapidly evolving and complex marketplace, Private Equity (PE) and other alternative investment funds face unprecedented technological challenges. The potential for technology to make or break a deal for a PE firm has never been greater than it is today due to complex systems.

The success of a deal after it closes can be measured in the time it takes to create value. Slow starts, limited resources and poor execution after a deal closes are recipes for disaster. However, engaging early with digital diligence post transaction can help an organization realize faster returns on their investments.

Organizations should closely examine different pieces of the puzzle to guide them on their journey. To position portfolio companies for growth, it is imperative to put the right team in place, optimize business operations, leverage technology and data as a core competitive advantage, accelerate add-ons, create differentiated products and ultimately drive a higher return on investment on exit.

M&A IT Due Diligence and Post-Transaction Optimization

The journey can seem daunting, but three key areas to focus on early in the process include:


What does the organization’s cybersecurity risk management program look like? How should the organization protect confidential information? Is the organization training its people in security best practices?


Are the organization’s back-office processes scalable? Does the business have an elastic infrastructure that can be modified as deemed necessary? Is the organization’s software? How often does the organization release new features? Is the business incurring added expenses resulting from poor technology choices?


What are the potential risks of the organization’s databases? What challenges does the business face in tracking financials? Is the organization using business intelligence tools and insights to drive decisions? How does the organization back up data and how quickly can you recover?

Getting started down the road of digital diligence can seem intimidating, but thoroughly completing this process is critical to accelerating value post transaction and will greatly benefit customers, management and employees on the new day one.

Learn more about how Cherry Bekaert can assist your organization with digital due diligence.

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