The Digital Transformation Imperative (KPMG)

By Jeffrey Kollin, U.S. Advisory Lead Principal, Private Equity, KPMG in the U.S.

If you haven’t taken the bold steps towards digital transformation within your business, you may be working with a built-in expiration date.

The competition in the private equity sector is more heated than ever. There are more firms getting in on the action, and there is more money available for investment. If you want to keep up, your firm is going to have to take advantage of digital innovation, both internally and also in the selection and management of portfolio companies.

While leading private equity firms have applied multiple digital innovations and have witnessed improvements in deal making and operational efficiencies, the industry as a whole is still in more of an awareness raising phase than an implementation phase.

The opportunities to effect change are abundant throughout the front, middle, and back offices, and can impact the entire life cycle of an investment, from deal sourcing, through to exit, and throughout the management and reporting phases of ownership.

In this whitepaper, we examine digital transformation from the perspective of a private equity fund and focus on the following:

  • Finding, valuing, and pricing investments (predeal assessment)
  • Managing, optimizing and/or merging portfolio companies (postdeal)
  • Exiting investment
  • Enhancing internal operations (tax reporting, regulatory compliance, investor communications)

So whether you decide to start your digital journey on your own or by aligning with a strategic partner who can help you, the time to act is now.