PE Solutions
What NRP Can Do For Private Equity
In today’s business world, digital transformation represents the most effective way to accelerate growth in portfolio companies. New Revolution Partners helps these companies expand their digital capabilities, revamp operations, accelerate efficiencies, expand customer segments and scale rapidly. We do this by implementing a playbook of value creation opportunities that spurs revenue growth and optimizes business operations.
NEW REVOLUTION PARTNERS
PRIVATE EQUITY ENGAGEMENT FRAMEWORK
NRP takes a holistic approach towards meeting the needs of our clients across the investment lifecycle, launching engagements quickly at any stage of investment.
DUE DILIGENCE
Digital Opportunity Discovery
Identify & Evaluate Opportunities
POST-ACQUISITION
Digital Opportunity Validation
Prioritize & Scope Opportunities
HOLDING PERIOD
Digital Value Acceleration
Accelerate Value Capture
EXIT
Pre-Exit Digital Assessment
Assess Current Efforts & New Value Areas
How we play across the investment and operational lifecycle
Early in an investment cycle or due diligence process, private equity firms and search funds spend hours assessing markets, identifying targets, vetting financials, making investments and streamlining operations. These are their core strengths.
Where investors are often challenged is in (1) time and (2) expertise when making digital growth decisions based on a target company’s current and planned technology platforms, infrastructure and capabilities.
Profitability of a deal also depends heavily on the degree to which a company has digitally enabled its processes and its ability to apply digital capabilities towards growth and efficiency assumptions. Expected margins don’t leave room for error.
As the investment cycle evolves, companies often struggle to optimize technology and digital capability investments in achieving investor objectives. Also, new opportunities emerge during the investment cycle which are often left uncapitalized.
In some cases, management may be unclear about how to prioritize opportunities or how to accelerate them. They may be inefficient in leveraging digital channels to better understand and serve customer needs. Or, they may be slow to adapt operations as markets change. These factors further threaten long term competitiveness.
What private equity firms and investors often need are digital transformation experts that can help them first develop technology-led hypotheses, then guide management teams in execution. NRP was created to be this transformation partner.
Digital Transformation is the application of digital capabilities to processes, products and assets in order to fundamentally change how a company operates, how it delivers value to customers and how it becomes agile in its response to changing customer, competitor and market conditions.
Four Considerations in Digital Transformation
Breadth: Sophisticated investors now assess areas such as digital marketing, channel optimization, customer experience, cloud infrastructure, RPA, AI, edge computing and data mining (among others) to uncover value
03.
Bandwidth: In a dynamic market with constantly changing technologies and business models, it has become increasingly difficult for management teams, investors and operating partners to be experts in all areas of value creation
04.
Expertise: For high-priced deals to retain their high value requires the right pools of digital expertise, at the right time, with the right playbook for success
DIGITAL TRANSFORMATION CHECKLIST
NRP measures a company’s digital transformation opportunities against 35 problem areas we’ve identified in our work. We then structure outcomes-based value acceleration programs targeting a company’s biggest challenges.
