How to rethink diligence and business strategy in digital PE deals

In this episode of the NextWave Private Equity podcast, Glenn Engler, EY-Parthenon Global Digital Leader and EY Americas Strategy and Transactions Digital Strategy Leader, joins Winna Brown to discuss how and where digital competence can be incorporated into the diligence process and manifested in a PE firm or portfolio company’s business strategy.

The word “digital” can be interpreted in a multitude of ways, but it’s important for PE firms and CEOs to start with a broad view regardless of industry or competency in the context of a deal. Because digital impacts every aspect of a business, digital strategy should be owned by the CEO, not siloed into individual functional areas such as marketing or technology.

PE firms, whether considering investment decisions, operational improvements or driving growth, must inject digital competence throughout the diligence process and business strategy to fully understand the value in both the target landscape and company DNA.    

Key takeaways

  • Digital touches every aspect of a PE firm or portfolio company, so the CEO should own a digital strategy inspired by the needs of the business and customer.
  • Digital competence is critical in understanding a target’s value and must be woven throughout the diligence process.
  • PE firms must look holistically and more upstream where PE, VC and corporate dollars flow to understand where value is created in the target landscape.
  • PE firms can explore digital in driving operational expertise and growth in portfolio companies with intelligent automation, digitizing supply chains, cloud, omnichannel/ecommerce, "frictionless" customer experience and new revenue models. 

For your convenience, full text transcript of this podcast is also available. Read the transcript

Presenters

Glenn Engler
EY-Parthenon Global Digital Leader; EY Americas Strategy and Transactions Digital Leader

Podcast

Episode 01

Duration 31m 18s

In this series

series overview
(Event List - Manual)

How to rethink diligence and business strategy in digital PE deals

In this episode, our speakers explore how private equity firms can leverage digital competence for performance and growth.
Podcast

Episode 01

Duration
31m 18s

Presenters