Accenture: a competitive advantage through technology for private equity firms

Zurich – Executives at private equity (PE) firms often underestimate the impact of new technologies on acquisitions and mergers. As competition for high-value deals intensifies, private equity managers must view technology as a driver of value in portfolio transactions, rather than as a cost and source of risk. In a new study, Accenture asked 50 PE managers from Europe and North America about their track record.

Perception and reality do not match
The Accenture study revealed that the majority of private company leaders rank their technology and digital assets as advanced. But in reality, only one out of three projects was successfully delivered, while the remaining two were either short on time or budget.

One of the reasons for this discrepancy is the lack of accuracy and uniformity in the technological aspects of the work. There is little clear guidance for special product expert teams on technology strategies and issues. In addition, technology due diligence checks are often performed by external consultants in part and as an addition to other subject matter competencies and are not completed by the same team.

Technology as a lever to create value
In order to successfully integrate technology into value creation for private equity firms, management must, among other things:

• Accompanying employees in the new environment,
• Provide only those technology solutions suitable for business and
• Adopt cloud-based platforms by default to speed implementation.

However, the techniques must also be used optimally. PE leaders who wish to successfully lead their teams to achieve greater value must identify and evaluate value-creating factors early on. Working with business and technology professionals who are well versed in both private equity and technology is helpful. (Accenture/Mac)

Download the study