Insight Category: Mergers & Acquisitions

When it comes to mergers and acquisitions (M&A), not all companies are created equal. Like puzzle pieces, the capabilities, corporate culture, and goals of one company must complement the other. This creates a single business entity where the sum of the whole is truly greater than its constituent parts. Technology due diligence is the art of ensuring that those puzzle pieces fit seamlessly together.

As an organization prepares for a merger or acquisition, technical due diligence has become increasingly critical. Private equity has many options available to improve a company’s operations. The first play, however, should almost always be on the technology side.

Today, there is a lot of talk about divestment activity and rebound. While this is good news for sellers keen on divesting underperforming assets so they can restructure and focus on growth in core areas, we believe it is imperative not to overlook associated M&A costs.

The relationship between PE firms and portfolio companies is delicate. General Partners (GPs) often have strong operational experience, something that translates into detailed thought on how to run the businesses they own. But strong managers don’t want to be micro-managed. To attract and retain top talent, funds, therefore, aim to be additive vs directive. With…

Private equity (PE) has traditionally been a sector that focused on fundamentals: what are the earnings and how can they be increased? While that remains the case today—healthy profits are required to pay down debt service from the acquisition and give PE firms room to breathe as they look to improve the underlying business—we are…

Sophisticated sales processes and commission structures are no reason to limit how a company seeks new sales via the web. Failing to provide a good experience on the web opens the door to competitors who do.

The travel industry has been an attractive investment area for Private Equity, showing around 5% growth every year. PE firms should take an extra look at any of their portfolio companies in the travel, hospitality, loyalty space and take the necessary steps to ensure customer data is protected.  Applying a strategic approach to security will empower companies to identify and prioritize their sensitive assets so they can proactively safeguard them.

Most enterprises can expand their enterprise value 10% to 15% by achieving reasonable levels of digital synchronization. These results come from increases in EBITDA tracing to better productivity—fewer employee hours required around many operations—and better and more responsive experiences for customers, which helps fuel sales and reduce churn.

In short, smart applications of technology will almost always offer the best way of putting incremental capital to use in a portfolio company. With the right technologists and operators, investments here will lead to better yields.

Businesses continue to pursue and grow through a number of different strategies, both organically and through M&A activity. With transaction levels near all-time highs the demand for fundamentally sound businesses forecasting is paramount. One overlooked cost with M&A activity is Stranded Costs.

CheckedUp, a specialty point of care company, today announced that Liberty Advisor Group, its retained technology assessment partner, has completed a review of their patient engagement platform.