How to increase EBITDA through Digital
Digital is fundamentally altering the way all industries do business. From healthcare to manufacturing to software and retail, customer expectations are changing, business models are being upended, and the pace at which technology is advancing is demanding unprecedented agility from management teams.
Indeed, the digital world poses specific challenges for private equity (PE), which invests in and operates companies that span different sectors, sizes, and stages of digital maturity—for relatively short periods of time. But it also poses significant opportunities: As experts in value creation, PE firms are poised to benefit from a focus on digital. When done well, it is a highly effective way to deliver efficiency improvements, revenue and earnings growth, and ensure a high pricing multiple at exit.
In the sky-high valuation environment that has defined the PE market in recent years, the need to identify innovative and effective investment angles to create value has never been more pressing. The ability of firms to develop digitally led investment theses, carry out effective digital diligence, and deliver on their strategies will separate the industry’s best and weakest performers.
From our CLA perspective, Digital will define PE’s success going forward.
So, it will be important to keep up in a fast-paced, competitive environment by embracing digital transformation to enhance or replace obsolete technology or repetitive manual processes. Achieve organizational goals, inspire your people, and engage your customers with technology experiences that are nimble, efficient, and effective.
We’re committed to addressing what matters most to you, no matter where you are on your digital transformation journey:
- Capturing the benefits of fast-moving trends in digital technologies
- Determining the right technology platforms for your business
- Implementing security considerations from the start
- Developing a comprehensive data strategy
- Integrating automation into your operations
- Incorporating Microsoft services for your teams
- Leveraging appropriate artificial intelligence and machine learning solutions
- Migrating to the ideal cloud solution
- Turning massive amounts of data into relevant, actionable insights
Experience our client-focused approach
Digital transformation creates areas of opportunity around data management, workflow automation, predictive analytics, machine learning, and the internet of things (IoT). Instead of letting technology drive the need to frantically restructure your company, let us help you develop your vision and strategy to adopt the technology needed to power your company’s continued success.
With CLA, there is no “one-size-fits-all” approach to digital transformation. We carefully assess your organization’s needs along with industry trendlines to provide a solution that is tailored to you. Some businesses need a complete overhaul of outdated manual processes, while others might be further along and ready to explore ways to leverage their data with innovation. In the end, what matters most is quickly adapting to meet the ever-changing needs of your industry, organization, people, and customers.
Craig Arends is a principal at CLA and is the managing principal of CLA's private equity practice. Craig brings a concentration of experience in providing accounting and transaction structuring advice for leveraged recapitalizations, purchase accounting and SEC reporting, assessing quality of earnings, and GAAP accounting. He has far-reaching experience with critiquing financial models and reviewing target companies' financial performance to identify cost reductions and/or operating efficiencies Craig has more than 30 years of experience in public accounting serving public companies, private equity groups, and companies, including a term as principal in charge of a Big Four Capital Markets Group in Moscow, Russia. He has led financial accounting due diligence projects for private equity investor groups and venture capital funds, primarily in the technology, communications, and manufacturing industries, as well as assisting with Foreign Corrupt Practice Act matters ranging from investigation of payments made, validation of compliance with corporate policies, and review of proposed transactions to ensure compliance. When not working, Craig enjoys watching any sports, but his most favorite are baseball, football and soccer.
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