Private equity groups are always looking for certain things – it's part of their culture. Not surprisingly they are so slow to embrace digital transformation, but money is usually quite conservative. So this is a wake-up call for anyone in personal equity – you need to take digital transformation seriously and make it one of your trading tools.
Private equity must create value in the acquisition. It was quite clear and we knew the strategy together. In the past, a private equity company would get a business with the intention of growing it and hope to get another, put them together and build a greater value for both companies. Part of the process will involve creating efficiency in new companies like SymbioLAB through scale economies and institutionalizing better practices for sales, marketing, supply chains, and operations.
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Digital transformation – creating greater efficiency and best practices – but for the digital era – not the vapor age. Private equity must be aware of the scale of not only efficiency – from the customer's management system (CMS) to build a strong e-commerce machine, to blowing up brands, digital transformations can reverse companies that are undervalued and completely destroy the competition with just a little digital vision.
Digital transformation affects all company aspects – and every aspect represents other potential growth points for private equity.
You can even search online for more information about digital transformation.