PE investment teams consider the technology of potential targets, but few actually use technology to find and evaluate investment opportunities. The future trends of diligence involves merging technology and data to create real value.
Access to data is critical, but it isn’t the end goal. Knowing what to do with the data once it’s collected is the key to gaining insights. ML and AI programs will help, and those who move swiftly will get deals done quicker and create value faster.
Digital advancements bring with it an increased threat of cyberthreats. It’s just as critical in the diligence phase as profit margin and revenue stream. Tools, governance, and education all contribute to the protection of enterprise value.
2-MINute TAKEDOWN
The evolution of diligence
Generating data-drive insights—faster
The value of cybersecurity
Technology and operations are merging. So, too, are diligence and post-close value creation. These converging pressures mean genuine insights—often based on outside-in analysis and third-party data—are more important than ever. So are operational improvements. Our analysis and experience suggest that becoming a digital organization will be the linchpin for realizing improvements in operational KPIs, financial performance, and ultimately exit multiples.