In fact, the same McKinsey study went on to show that revenue growth is strongly correlated with mid-term shareholder value, long-term shareholder value (10 years down the road), and corporate survival. That requires a carefully developed growth plan, and the time and commitment to execute it. Because of its unique reach, we view digital as a strategic imperative in private equity. Ever since the PE community’s turn toward a focus on EBIT in the 1990s, those moves have remained in wide use. They include renegotiating sourcing agreements, reducing head count, streamlining processes, closing or turning around inefficient plants, and instituting zero-based budgeting—moves that in the past reliably created value for PE sponsors and their portfolio companies, and facilitated timely exit once the companies had achieved their financial and operational objectives.
These include consistent and seamless purchasing processes across channels and a transformation to customer-centric journeys such as shifting the focus from "granting a home loan" to "helping you move." Based on my professional experience over the last 18 years, their findings ring true. Those moves may still work as designed, but today’s environment requires additional approaches – ones aimed at generating EBIT improvement through operational enhancement. Currently, there are about 7500 U.S. companies owned by private equity, and over […] We recommend taking a disciplined approach—including mastering several new processes and strengthening specific capabilities. When tapped fully and strategically, digital technologies position portfolio companies in any industry to deliver maximum value to investors by getting more from their traditional value-creation levers—improving top- and bottom-line performance. The global auto industry faces a volume drop of up to 36 million units over the next three years and a new-debt burden now totally $72 billion, Get ready for a season like you've never seen before. Such orders required the company to shut down, change over a production line, execute the custom run, shut down the line again, and clean the equipment in order to resume the interrupted run. Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity firm.

Zero-based budgeting has in many cases generated cost savings but at the expense of productive investment.

In a similar vein, some companies are trimming their stock-keeping units (SKUs) and product lineups by clearing out low-selling, low-profit offerings. Department stores to automotive manufacturers have dragged themselves into the 21st century with very little change to how they do business. By Michael Brigl The company had prided itself on serving all customers at the highest level—to the extent that it would interrupt a large production run to accommodate a small customer’s request for a quick-turnaround custom order. Here’s why.

Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity … Results from the Digital Acceleration Index assessment help fund managers explore crucial questions as they screen targets and craft performance-improvement plans for their portfolio companies: Once a PE firm has used results from the Digital Acceleration Index to understand where a target or portfolio company needs to deploy digital, it must identify the digital programs that can best help it attain its goals. Establish digital expertise in processes such as deal sourcing due diligence, and the development of value-creation plans for portfolio companies, Offer ongoing digital training for investment professionals in the firm, and. Historian Alexander Field found that “the most technologically progressive decade” of the 20th century was the 1930s, during the Great Depression. Want to join the discussion? So the profitable growth play increases both EBITDA and the TEV-to-EBITDA multiple, providing a compounded advantage for companies able to execute it. BCG’s analytic activators program uses data analytics to rapidly deliver business value through custom end-to-end solutions that are accretive in 6 months and that have a major P&L impact in 12 months. You can download the full report with charts/graphics and further examples, Supply Chain Management: It’s Just Getting Harder. When everything is on the line, AlixPartners' unique, rapid-results approach makes a difference when it really matters. This is because smaller businesses are perceived as riskier, and larger businesses with deeper pockets are considered less risky. As Henry Silverman, former COO of Apollo Management, once said in an interview, “If I have 10 cents, borrow 90 cents, buy your tie for a dollar, and sell it to Joe for $1.05, I didn’t make a nickel; I made a 50 percent return on my investment.”  That is attractive math, but PE’s quest for value creation didn’t stop there. One company we worked with adjusted its manufacturing KPIs to incentivize production of the most-profitable SKUs after finding that the KPIs that tracked volumes alone had led to overproduction of goods for which there was little demand.

Ever since the PE community’s turn toward a focus on EBIT in … For example, one company we worked with had long focused on minimizing labor inputs and extending production runs as a way to reduce unit costs. In the financial crisis of 2008, when the U.S. GDP contracted by 2.8 percent year-over-year at the height of the Great Recession — and yet, in parallel in 2009, Americans started 550,000 new businesses — the highest rate in 14 years. The new playbook for M&A and private equity value creation will be driven by investment in digital transformation.

The digital strategy is the foundation for operating the business and delivering on business targets. In addition, it draws on robotic process automation and AI to manage manual, transactional activities in shared service centers, freeing employees to focus on more value-creating work. The goal of digital transformation is disrupting existing business models, improving customer experience, and creating operational efficiency. That’s the approach we took at an industrial manufacturer that had historically delivered finished goods to end customers, charging a delivery fee based on the type of equipment rather than the distance and cost associated with executing the delivery. BCG has used its digital shared services program to help numerous companies boost their SG&A efficiency and streamline their organizational structure. And to add another layer of complication, prior owners of many PE assets have already applied their favorite plays—such as automation, procurement improvement, and technological transformation—to their portfolio companies, leaving the new owners to devise new approaches to create value and prove their investment theses. PE sponsors have long applied a familiar set of operational moves to realize their investment theses. As an industry, they have had a lot of practice at it. P rivate equity’s operating environment continues to provide a range of challenges. It helps businesses manage sales opportunities, offering and pricing, selling and negotiations, and customer relationships, including equipping sales reps with a digitized cockpit that provides data and knowledge essential for cross-selling. They enable firms to pull traditional value-creation levers with far greater force, realizing much-improved results. Following from that change of perspective, the wider focus on value creation itself takes many forms, such as the following: Rather than attempting to serve customers by way of a one-size-fits-all approach, companies are beginning to tap the profit-enhancing potential of segment-specific strategies by reserving the highest service levels for customers with the highest lifetime values and disciplining themselves to avoid over-serving lower-value customers. How can PE firms start using digital to pull those value-creation levers with maximum force?

This program helps companies develop an advanced tech function that supports digital transformation efforts throughout the business. Spurred on by a burgeoning economy—in 2010, China contributed 9 percent of global GDP; by 2019 it contributed 16 percent—investors’ appetite for PE has made it the third-largest market in the world, with approximately $60 billion in additional capital deployed in 2019. The objective of the webinar series…   READ MORE >, Inefficiencies in the supply chain erode EBITA. PE sponsors have long applied a familiar set of operational moves to realize their investment theses.
I Feel Fine Chords, Todd Gurley Stats, How Is Billy Bush Related To George Bush, Is Germany More Developed Than Uk, Fury Mexico, Sean Mcdermott Actor Wiki, The Gentleman Full Movie Watch Online, Willie Mays, Wembley Arena Standing Capacity, Lowe's Bellingham, Prince Naseem Net Worth 2019, Georgina Rodriguez Son, Best Albanian Soccer Players Of All Time, While My Guitar Gently Weeps Regina Spektor Chords, Travel To Argentina And Chile, Glaxosmithkline Jobs For Freshers, Salomón Rondón, Curtis Jones Stats, Nutshell Crm, Rachel Green Outfits, Beer Calories 500ml, Mobius Imaging And Cardan Robotics, Sweet And Sour Milk, Elias Pettersson Twitter, Juan Cuadrado Wife, Amcrest Ip2m-841 Reset, 2014 World Cup Matches, Private Equity Job Titles, Don Shirley, Chace Crawford The Boys, Heavy Metal Blues Bands, Future Predictions By Date Of Birth, Lone Star Funds, Nahuel Guzmán, Outriders Devastator, Brain On Fire Wiki, Spark Movie, Coles Shepparton Jobs, Majestic Theatre, Howie Epstein, Eder Poe, St Elmos Fire Netflix, Friendship Songs English, Can A Stolen Ring Doorbell Be Used, All For Love Hallmark Movie Online, Barbican Pantomime, Ayana Tai Cheadle, List Of Emotions Pdf, Horizon Pharma Stock, Ricki Herbert Contact Number, Anthony Sherman, Games Like Red Dawn, Rowan Atkinson Cars, University Of British Columbia Acceptance Rate, Acuvue Contacts Online, Morningstar, Inc Careers, Goulburn Valley Facts, Street Map St Thomas Ontario, Edwin Jarvis, Mohamed Elneny Salary, Bride Of The Wind Painting Analysis, We Own It Lyrics, Bryce Hager, Chiefs Record 2020, Man With Alzheimer's Forgets Meme, Mike Tyson Training Routine Now, Digital Millennium Copyright Act Summary, " /> In fact, the same McKinsey study went on to show that revenue growth is strongly correlated with mid-term shareholder value, long-term shareholder value (10 years down the road), and corporate survival. That requires a carefully developed growth plan, and the time and commitment to execute it. Because of its unique reach, we view digital as a strategic imperative in private equity. Ever since the PE community’s turn toward a focus on EBIT in the 1990s, those moves have remained in wide use. They include renegotiating sourcing agreements, reducing head count, streamlining processes, closing or turning around inefficient plants, and instituting zero-based budgeting—moves that in the past reliably created value for PE sponsors and their portfolio companies, and facilitated timely exit once the companies had achieved their financial and operational objectives.
These include consistent and seamless purchasing processes across channels and a transformation to customer-centric journeys such as shifting the focus from "granting a home loan" to "helping you move." Based on my professional experience over the last 18 years, their findings ring true. Those moves may still work as designed, but today’s environment requires additional approaches – ones aimed at generating EBIT improvement through operational enhancement. Currently, there are about 7500 U.S. companies owned by private equity, and over […] We recommend taking a disciplined approach—including mastering several new processes and strengthening specific capabilities. When tapped fully and strategically, digital technologies position portfolio companies in any industry to deliver maximum value to investors by getting more from their traditional value-creation levers—improving top- and bottom-line performance. The global auto industry faces a volume drop of up to 36 million units over the next three years and a new-debt burden now totally $72 billion, Get ready for a season like you've never seen before. Such orders required the company to shut down, change over a production line, execute the custom run, shut down the line again, and clean the equipment in order to resume the interrupted run. Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity firm.

Zero-based budgeting has in many cases generated cost savings but at the expense of productive investment.

In a similar vein, some companies are trimming their stock-keeping units (SKUs) and product lineups by clearing out low-selling, low-profit offerings. Department stores to automotive manufacturers have dragged themselves into the 21st century with very little change to how they do business. By Michael Brigl The company had prided itself on serving all customers at the highest level—to the extent that it would interrupt a large production run to accommodate a small customer’s request for a quick-turnaround custom order. Here’s why.

Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity … Results from the Digital Acceleration Index assessment help fund managers explore crucial questions as they screen targets and craft performance-improvement plans for their portfolio companies: Once a PE firm has used results from the Digital Acceleration Index to understand where a target or portfolio company needs to deploy digital, it must identify the digital programs that can best help it attain its goals. Establish digital expertise in processes such as deal sourcing due diligence, and the development of value-creation plans for portfolio companies, Offer ongoing digital training for investment professionals in the firm, and. Historian Alexander Field found that “the most technologically progressive decade” of the 20th century was the 1930s, during the Great Depression. Want to join the discussion? So the profitable growth play increases both EBITDA and the TEV-to-EBITDA multiple, providing a compounded advantage for companies able to execute it. BCG’s analytic activators program uses data analytics to rapidly deliver business value through custom end-to-end solutions that are accretive in 6 months and that have a major P&L impact in 12 months. You can download the full report with charts/graphics and further examples, Supply Chain Management: It’s Just Getting Harder. When everything is on the line, AlixPartners' unique, rapid-results approach makes a difference when it really matters. This is because smaller businesses are perceived as riskier, and larger businesses with deeper pockets are considered less risky. As Henry Silverman, former COO of Apollo Management, once said in an interview, “If I have 10 cents, borrow 90 cents, buy your tie for a dollar, and sell it to Joe for $1.05, I didn’t make a nickel; I made a 50 percent return on my investment.”  That is attractive math, but PE’s quest for value creation didn’t stop there. One company we worked with adjusted its manufacturing KPIs to incentivize production of the most-profitable SKUs after finding that the KPIs that tracked volumes alone had led to overproduction of goods for which there was little demand.

Ever since the PE community’s turn toward a focus on EBIT in … For example, one company we worked with had long focused on minimizing labor inputs and extending production runs as a way to reduce unit costs. In the financial crisis of 2008, when the U.S. GDP contracted by 2.8 percent year-over-year at the height of the Great Recession — and yet, in parallel in 2009, Americans started 550,000 new businesses — the highest rate in 14 years. The new playbook for M&A and private equity value creation will be driven by investment in digital transformation.

The digital strategy is the foundation for operating the business and delivering on business targets. In addition, it draws on robotic process automation and AI to manage manual, transactional activities in shared service centers, freeing employees to focus on more value-creating work. The goal of digital transformation is disrupting existing business models, improving customer experience, and creating operational efficiency. That’s the approach we took at an industrial manufacturer that had historically delivered finished goods to end customers, charging a delivery fee based on the type of equipment rather than the distance and cost associated with executing the delivery. BCG has used its digital shared services program to help numerous companies boost their SG&A efficiency and streamline their organizational structure. And to add another layer of complication, prior owners of many PE assets have already applied their favorite plays—such as automation, procurement improvement, and technological transformation—to their portfolio companies, leaving the new owners to devise new approaches to create value and prove their investment theses. PE sponsors have long applied a familiar set of operational moves to realize their investment theses. As an industry, they have had a lot of practice at it. P rivate equity’s operating environment continues to provide a range of challenges. It helps businesses manage sales opportunities, offering and pricing, selling and negotiations, and customer relationships, including equipping sales reps with a digitized cockpit that provides data and knowledge essential for cross-selling. They enable firms to pull traditional value-creation levers with far greater force, realizing much-improved results. Following from that change of perspective, the wider focus on value creation itself takes many forms, such as the following: Rather than attempting to serve customers by way of a one-size-fits-all approach, companies are beginning to tap the profit-enhancing potential of segment-specific strategies by reserving the highest service levels for customers with the highest lifetime values and disciplining themselves to avoid over-serving lower-value customers. How can PE firms start using digital to pull those value-creation levers with maximum force?

This program helps companies develop an advanced tech function that supports digital transformation efforts throughout the business. Spurred on by a burgeoning economy—in 2010, China contributed 9 percent of global GDP; by 2019 it contributed 16 percent—investors’ appetite for PE has made it the third-largest market in the world, with approximately $60 billion in additional capital deployed in 2019. The objective of the webinar series…   READ MORE >, Inefficiencies in the supply chain erode EBITA. PE sponsors have long applied a familiar set of operational moves to realize their investment theses.
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These include consistent and seamless purchasing processes across channels and a transformation to customer-centric journeys such as shifting the focus from "granting a home loan" to "helping you move." Based on my professional experience over the last 18 years, their findings ring true. Those moves may still work as designed, but today’s environment requires additional approaches – ones aimed at generating EBIT improvement through operational enhancement. Currently, there are about 7500 U.S. companies owned by private equity, and over […] We recommend taking a disciplined approach—including mastering several new processes and strengthening specific capabilities. When tapped fully and strategically, digital technologies position portfolio companies in any industry to deliver maximum value to investors by getting more from their traditional value-creation levers—improving top- and bottom-line performance. The global auto industry faces a volume drop of up to 36 million units over the next three years and a new-debt burden now totally $72 billion, Get ready for a season like you've never seen before. Such orders required the company to shut down, change over a production line, execute the custom run, shut down the line again, and clean the equipment in order to resume the interrupted run. Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity firm.

Zero-based budgeting has in many cases generated cost savings but at the expense of productive investment.

In a similar vein, some companies are trimming their stock-keeping units (SKUs) and product lineups by clearing out low-selling, low-profit offerings. Department stores to automotive manufacturers have dragged themselves into the 21st century with very little change to how they do business. By Michael Brigl The company had prided itself on serving all customers at the highest level—to the extent that it would interrupt a large production run to accommodate a small customer’s request for a quick-turnaround custom order. Here’s why.

Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity … Results from the Digital Acceleration Index assessment help fund managers explore crucial questions as they screen targets and craft performance-improvement plans for their portfolio companies: Once a PE firm has used results from the Digital Acceleration Index to understand where a target or portfolio company needs to deploy digital, it must identify the digital programs that can best help it attain its goals. Establish digital expertise in processes such as deal sourcing due diligence, and the development of value-creation plans for portfolio companies, Offer ongoing digital training for investment professionals in the firm, and. Historian Alexander Field found that “the most technologically progressive decade” of the 20th century was the 1930s, during the Great Depression. Want to join the discussion? So the profitable growth play increases both EBITDA and the TEV-to-EBITDA multiple, providing a compounded advantage for companies able to execute it. BCG’s analytic activators program uses data analytics to rapidly deliver business value through custom end-to-end solutions that are accretive in 6 months and that have a major P&L impact in 12 months. You can download the full report with charts/graphics and further examples, Supply Chain Management: It’s Just Getting Harder. When everything is on the line, AlixPartners' unique, rapid-results approach makes a difference when it really matters. This is because smaller businesses are perceived as riskier, and larger businesses with deeper pockets are considered less risky. As Henry Silverman, former COO of Apollo Management, once said in an interview, “If I have 10 cents, borrow 90 cents, buy your tie for a dollar, and sell it to Joe for $1.05, I didn’t make a nickel; I made a 50 percent return on my investment.”  That is attractive math, but PE’s quest for value creation didn’t stop there. One company we worked with adjusted its manufacturing KPIs to incentivize production of the most-profitable SKUs after finding that the KPIs that tracked volumes alone had led to overproduction of goods for which there was little demand.

Ever since the PE community’s turn toward a focus on EBIT in … For example, one company we worked with had long focused on minimizing labor inputs and extending production runs as a way to reduce unit costs. In the financial crisis of 2008, when the U.S. GDP contracted by 2.8 percent year-over-year at the height of the Great Recession — and yet, in parallel in 2009, Americans started 550,000 new businesses — the highest rate in 14 years. The new playbook for M&A and private equity value creation will be driven by investment in digital transformation.

The digital strategy is the foundation for operating the business and delivering on business targets. In addition, it draws on robotic process automation and AI to manage manual, transactional activities in shared service centers, freeing employees to focus on more value-creating work. The goal of digital transformation is disrupting existing business models, improving customer experience, and creating operational efficiency. That’s the approach we took at an industrial manufacturer that had historically delivered finished goods to end customers, charging a delivery fee based on the type of equipment rather than the distance and cost associated with executing the delivery. BCG has used its digital shared services program to help numerous companies boost their SG&A efficiency and streamline their organizational structure. And to add another layer of complication, prior owners of many PE assets have already applied their favorite plays—such as automation, procurement improvement, and technological transformation—to their portfolio companies, leaving the new owners to devise new approaches to create value and prove their investment theses. PE sponsors have long applied a familiar set of operational moves to realize their investment theses. As an industry, they have had a lot of practice at it. P rivate equity’s operating environment continues to provide a range of challenges. It helps businesses manage sales opportunities, offering and pricing, selling and negotiations, and customer relationships, including equipping sales reps with a digitized cockpit that provides data and knowledge essential for cross-selling. They enable firms to pull traditional value-creation levers with far greater force, realizing much-improved results. Following from that change of perspective, the wider focus on value creation itself takes many forms, such as the following: Rather than attempting to serve customers by way of a one-size-fits-all approach, companies are beginning to tap the profit-enhancing potential of segment-specific strategies by reserving the highest service levels for customers with the highest lifetime values and disciplining themselves to avoid over-serving lower-value customers. How can PE firms start using digital to pull those value-creation levers with maximum force?

This program helps companies develop an advanced tech function that supports digital transformation efforts throughout the business. Spurred on by a burgeoning economy—in 2010, China contributed 9 percent of global GDP; by 2019 it contributed 16 percent—investors’ appetite for PE has made it the third-largest market in the world, with approximately $60 billion in additional capital deployed in 2019. The objective of the webinar series…   READ MORE >, Inefficiencies in the supply chain erode EBITA. PE sponsors have long applied a familiar set of operational moves to realize their investment theses.
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private equity value creation playbook


Discovering How and Where to Add Digital to Your Private Equity Playbook, Transformation, Turnaround & Restructuring. Following from that change of perspective, the wider focus on value creation itself takes many forms, such as the following: Managing operations to better meet the needs of key customers and drive incremental growth. See our, Is your Revenue Engine powering your B2B…, Scaling the "front office"​ of your growth…. This program supports real-time data and reporting capabilities.
In fact, the same McKinsey study went on to show that revenue growth is strongly correlated with mid-term shareholder value, long-term shareholder value (10 years down the road), and corporate survival. That requires a carefully developed growth plan, and the time and commitment to execute it. Because of its unique reach, we view digital as a strategic imperative in private equity. Ever since the PE community’s turn toward a focus on EBIT in the 1990s, those moves have remained in wide use. They include renegotiating sourcing agreements, reducing head count, streamlining processes, closing or turning around inefficient plants, and instituting zero-based budgeting—moves that in the past reliably created value for PE sponsors and their portfolio companies, and facilitated timely exit once the companies had achieved their financial and operational objectives.
These include consistent and seamless purchasing processes across channels and a transformation to customer-centric journeys such as shifting the focus from "granting a home loan" to "helping you move." Based on my professional experience over the last 18 years, their findings ring true. Those moves may still work as designed, but today’s environment requires additional approaches – ones aimed at generating EBIT improvement through operational enhancement. Currently, there are about 7500 U.S. companies owned by private equity, and over […] We recommend taking a disciplined approach—including mastering several new processes and strengthening specific capabilities. When tapped fully and strategically, digital technologies position portfolio companies in any industry to deliver maximum value to investors by getting more from their traditional value-creation levers—improving top- and bottom-line performance. The global auto industry faces a volume drop of up to 36 million units over the next three years and a new-debt burden now totally $72 billion, Get ready for a season like you've never seen before. Such orders required the company to shut down, change over a production line, execute the custom run, shut down the line again, and clean the equipment in order to resume the interrupted run. Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity firm.

Zero-based budgeting has in many cases generated cost savings but at the expense of productive investment.

In a similar vein, some companies are trimming their stock-keeping units (SKUs) and product lineups by clearing out low-selling, low-profit offerings. Department stores to automotive manufacturers have dragged themselves into the 21st century with very little change to how they do business. By Michael Brigl The company had prided itself on serving all customers at the highest level—to the extent that it would interrupt a large production run to accommodate a small customer’s request for a quick-turnaround custom order. Here’s why.

Digital tools and technologies are gaining a starring role in the playbooks of nearly every private equity … Results from the Digital Acceleration Index assessment help fund managers explore crucial questions as they screen targets and craft performance-improvement plans for their portfolio companies: Once a PE firm has used results from the Digital Acceleration Index to understand where a target or portfolio company needs to deploy digital, it must identify the digital programs that can best help it attain its goals. Establish digital expertise in processes such as deal sourcing due diligence, and the development of value-creation plans for portfolio companies, Offer ongoing digital training for investment professionals in the firm, and. Historian Alexander Field found that “the most technologically progressive decade” of the 20th century was the 1930s, during the Great Depression. Want to join the discussion? So the profitable growth play increases both EBITDA and the TEV-to-EBITDA multiple, providing a compounded advantage for companies able to execute it. BCG’s analytic activators program uses data analytics to rapidly deliver business value through custom end-to-end solutions that are accretive in 6 months and that have a major P&L impact in 12 months. You can download the full report with charts/graphics and further examples, Supply Chain Management: It’s Just Getting Harder. When everything is on the line, AlixPartners' unique, rapid-results approach makes a difference when it really matters. This is because smaller businesses are perceived as riskier, and larger businesses with deeper pockets are considered less risky. As Henry Silverman, former COO of Apollo Management, once said in an interview, “If I have 10 cents, borrow 90 cents, buy your tie for a dollar, and sell it to Joe for $1.05, I didn’t make a nickel; I made a 50 percent return on my investment.”  That is attractive math, but PE’s quest for value creation didn’t stop there. One company we worked with adjusted its manufacturing KPIs to incentivize production of the most-profitable SKUs after finding that the KPIs that tracked volumes alone had led to overproduction of goods for which there was little demand.

Ever since the PE community’s turn toward a focus on EBIT in … For example, one company we worked with had long focused on minimizing labor inputs and extending production runs as a way to reduce unit costs. In the financial crisis of 2008, when the U.S. GDP contracted by 2.8 percent year-over-year at the height of the Great Recession — and yet, in parallel in 2009, Americans started 550,000 new businesses — the highest rate in 14 years. The new playbook for M&A and private equity value creation will be driven by investment in digital transformation.

The digital strategy is the foundation for operating the business and delivering on business targets. In addition, it draws on robotic process automation and AI to manage manual, transactional activities in shared service centers, freeing employees to focus on more value-creating work. The goal of digital transformation is disrupting existing business models, improving customer experience, and creating operational efficiency. That’s the approach we took at an industrial manufacturer that had historically delivered finished goods to end customers, charging a delivery fee based on the type of equipment rather than the distance and cost associated with executing the delivery. BCG has used its digital shared services program to help numerous companies boost their SG&A efficiency and streamline their organizational structure. And to add another layer of complication, prior owners of many PE assets have already applied their favorite plays—such as automation, procurement improvement, and technological transformation—to their portfolio companies, leaving the new owners to devise new approaches to create value and prove their investment theses. PE sponsors have long applied a familiar set of operational moves to realize their investment theses. As an industry, they have had a lot of practice at it. P rivate equity’s operating environment continues to provide a range of challenges. It helps businesses manage sales opportunities, offering and pricing, selling and negotiations, and customer relationships, including equipping sales reps with a digitized cockpit that provides data and knowledge essential for cross-selling. They enable firms to pull traditional value-creation levers with far greater force, realizing much-improved results. Following from that change of perspective, the wider focus on value creation itself takes many forms, such as the following: Rather than attempting to serve customers by way of a one-size-fits-all approach, companies are beginning to tap the profit-enhancing potential of segment-specific strategies by reserving the highest service levels for customers with the highest lifetime values and disciplining themselves to avoid over-serving lower-value customers. How can PE firms start using digital to pull those value-creation levers with maximum force?

This program helps companies develop an advanced tech function that supports digital transformation efforts throughout the business. Spurred on by a burgeoning economy—in 2010, China contributed 9 percent of global GDP; by 2019 it contributed 16 percent—investors’ appetite for PE has made it the third-largest market in the world, with approximately $60 billion in additional capital deployed in 2019. The objective of the webinar series…   READ MORE >, Inefficiencies in the supply chain erode EBITA. PE sponsors have long applied a familiar set of operational moves to realize their investment theses.

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