Private Equity Firms and Enterprise Technology: 5 Guidelines to Drive Value

Private Equity firms face a unique set of challenges when considering enterprise technology evaluation, selection, and implementation.

When the “buy-to-sell” goal is to acquire manufacturing and distribution companies with the intention of aligning and integrating them profitably, there is no room for manual processes, stand-alone point solutions, duplicate data entry, workarounds or other inefficiencies.

As an independent ERP consulting firm, we understand a modern Enterprise Resource Planning system has the potential to support the profitability goal of the PE firm while maximizing resources. Smart use of ERP in acquired companies helps achieve higher returns and accelerates growth.

For the PE investor, Ultra’s team puts the focus on value creation and running portfolios for the best return on investment.

Team with Ultra for Value Creation

When it comes to Private Equity Firms and Enterprise Technology, Ultra Consultants is regularly sought out by PE firms as investors consider merger and acquisition activities in the manufacturing and distribution sector.

We’ve provided value by leading projects in a range of manufacturing and distribution organizations. Our specialized experts guide teams in business process improvement, enterprise software selection, and implementation, as well as change and risk management for timely projects that deliver ROI to PE firms.

5 Guidelines for PE Firms

To help PE firms understand the best path to success, see the following guidelines on setting the most effective fast track to ROI when it comes to Private Equity Firms and Enterprise Technology initiatives.

1 – Start with the Current State

Very often, a PE firm looks to evaluate the current state of how a manufacturer leverages enterprise technology. A pressing issue for advisors is to understand what is needed for due diligence to study if the organization is operating with effective operations.

Key considerations related to enterprise technology involve visibility, accurate reporting, and real-time access to information.

Ultra’s current state analysis assesses whether the manufacturing organization’s legacy systems offer core functionality without the need for manual, expensive, time-consuming stand-alone systems, manual record-keeping, narrow or unreliable integrations across third-party systems, and other limitations.

2 – Put the Goal on Process Improvements

As a firm acquires manufacturing and distribution companies, once the current state is analyzed, it is key to understand the desired future state with business process improvement as the goal.

More than just a technology initiative, Ultra business improvement consultants work with Private Equity firms to be sure that business processes are tightened and streamlined across the organization.

3 – Assess Scalability, Flexibility

How well does the current technology support growth in the business? Are processes flexible enough to support easy changes in procedures to support a new acquisition or expansion of sales channels?

As the firm continues to acquire new businesses within the manufacturing sector, it should be a straightforward process to incorporate the new company onto the ERP platform.

Ultra helps select and implement modern technology that improves processes and enables nimbleness in both execution and reporting. With a modern enterprise system in place, integrating newly acquired businesses or expanding market potential is often a simple matter of configuration rather than expensive programming.

4 – Focus on Reporting, Data Visibility

With a newly acquired company, is performance data easily transformed into meaningful information? Technology that supports today’s best practices has made reporting actionable and available in real-time.

Ultra understands the landscape of ERP systems that enhance reporting and deliver real-time insight for improved decisions based on key performance indicators. Business intelligence is an important tool for PE firms to measure value and progress and predict cash flows.

5 – Manage Change and Risk

Driving process improvement, integrations of companies, or technology projects can be complex.

For lasting change, the emphasis must be on people and processes.

The most sophisticated PE firms recognize that managing risk and change drive scalability and growth.

PE firms team with Ultra for risk mitigation and organizational change management delivered with a structured, purposeful approach aimed to help transition people, teams, and organizations from the current state to the desired future state.

Get on the Fast Track

For the PE community, growing portfolio revenues and profits are dependent on process improvement supported by enterprise technology systems, including ERP.

Well-Managed process improvement and/or technology project between Private Equity Firms and Enterprise Technology will drive cost savings and operational improvements, helping companies survive and thrive.

Let’s connect to discuss your requirements.

Software selection and implementation processes often present challenges of their own. To steer you around trouble and help you drive success, Ultra’s experts compiled a list of pain points and solutions to be aware of as you embark on this journey.

CEO at | Website | + posts

Jeff is the founder of Ultra Consultants, a well-known voice in the ERP consulting industry and an expert on ERP solutions for discrete and process manufacturers. Over the last 40-plus years, his companies have helped more than 2,000 organizations improve their business processes, select ERP software and implement advanced solutions.

Scroll to Top