Today, only 20% of all value creation is tech led.
Buyout private equity firms predict they are missing up to 15% EV but not focusing on tech challenges.
Here are examples of where you can create Tech Value for your Private Equity firm.
The hard part is finding this value; fixing the problem when you’ve uncovered it is the easy part.
Like how do I reduce churn due to service, increase performance to be best in class without increasing costs and scale my subscribers 5x over 24 months ahead of an exit?
Like migrating to the cloud in 6 months, costs increased from $20m to $60m p.a. all while moving from a paid subscription model that could increase user volumes 20x in 12 months.
Like merging two global tech platforms, One with a 22x higher cost per user, the other causing 200+ incidents per week and the biggest cloud provider in the world can’t get the servers you need.
And here’s what your peers said about Tech Value Creation™.
From those on the front lines.
“We’ve tended to avoid technology change in the past, we tried, but results were inconsistent, not anymore”
“If we’d found just $1m of EBITDA, that would have been a very significant find, these are very big numbers’”
“Why are the tech team not finding these opportunities? It’s just inanimate cost? It’s out there now, lets go get it”
You are probably wondering, who are Market Hill?
Market Hill is the value creation arm of the Northdoor Group; together, we have 30+ years of experience in creating better business through technology.
Market Hill do this alongside Private Equity firms to maximise their portfolio companies’ future valuations.
We solve complex technology problems to unlock step changes in value creation.
You might also be thinking, those are all good points, we should be driving more technology value across our portfolio companies.
But, what do we need to look out for and how do we get started?
Technology challenges can severely limit technology value creation, you’ll recognise the symptoms, they are typically experienced as:
1) Linear technology or cloud cost growth
2) Technology related user churn
3) Long running digital transformation programmes
When talking with tech leaders, as an operator or value creation, it’s hard to know which of these are worth your time and investment to solve.
If these symptoms resonate, and you want to find out what to do next, we should talk.
Please email firstname.lastname@example.org to speak to a real person, and challenge the status quo.