Solutions

What NRP Can Do For You

In today’s business world, digital transformation represents the most effective way to accelerate growth. New Revolution Partners helps 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
CONSULTING 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

ASSESSMENT
  • Independent digital opportunity review

  • Digital value levers identified

SIZING
  • Digital targets and hypotheses finalized

  • Macro EBITDA improvements sized

POST-ACQUISITION

Digital Opportunity Validation

Prioritize & Scope Opportunities

PRIORITIZATION
High-impact opportunity areas prioritized based on:
  • Value to company

  • Current and near-term digital capabilities

VALUATION
  • Digital improvement opportunities, confidence levels and risk factors quantified

  • Value metrics, tracking mechanisms and timelines to financial outcomes detailed

HOLDING PERIOD

Digital Value Acceleration

Accelerate Value Capture

VALUE DEFINITION
  • Current state mapped

  • Cross-functional agile sprint teams structured

  • Resource gaps identified and capabilities augmented

  • Definition of Done” for pilot and program teams clearly defined

EXECUTION
  • Milestone and metric-based outcomes defined

  • Sprint planning initiated and agile teams cycle through sprints, pivoting as required to ensure financial targets

  • Agile methods and market responsiveness embedded in processes

EXIT

Pre-Exit Digital Assessment

Assess Current Efforts & New Value Areas

KILL, KEEP OR EVOLVE
  • Current digital initiatives and valuation contribution reassessed

  • Changing market dynamics prioritize new digital value opportunities

  • Areas to shut down, pivot or add investment detailed

VALUE BOOST
Business improvement targets refocused to boost value
  • Re-direct efforts towards higher value-creating opportunities

  • Launch new teams to capitalize value in advance of sale

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

01.
Valuation: Historical approaches of valuing businesses based on free cash flow have evolved towards value creation plans that show scalable growth and efficiency in order to justify aggressive valuations
02.

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.

Financial Objectives:
  • Digital initiatives not achieving desired financial goals

  • Financial targets require acceleration to achieve investment objectives

  • Key metrics not well defined or lack accountability

  • Growth and efficiency opportunities not prioritized

  • Programmatic investments not continually reassessed

  • Digital marketing and sales costs are high

  • Digital marketing spend is inefficient

  • Customer servicing and support costs are high

  • Recurring monthly and annual digital revenues are low

  • Share of digital transactions is below industry average

Customer Products, Services and Experience:
  • Customer experience is poor or customers not served well

  • Misalignment between customer needs and company offerings

  • Value proposition not well understood by customers

  • Value proposition across customer segments not clearly defined

  • Profitable customer segments unknown or ineffectively targeted

  • Customers increasingly lost to competitor products or services

  • Competitors are more innovative

  • Competitors better able to capitalize profitable trends

  • Digital conversion rates and retention are low

  • Direct-to-consumer and cross-selling opportunities not capitalized`

People and Partners:
  • Management or staff resistant to change or doesn’t see need for it

  • Management or staff lacks customer-first focus

  • Management lacks effective data-driven decision-making tools

  • Workforce not structured to succeed with next-gen customers

  • Digital skills required to be competitive not identified or missing

  • Culture discourages experimentation and innovation

  • Inability to attract or retain digital talent

  • Partners and innovative technologies ineffectively integrated

Process and Technology:
  • Digital strategy, business model and operational opportunities unclear

  • Teams not agile enough to pivot with changes in market and customers

  • Processes are not effectively digitized or automated

  • Processes do not allow products or services to scale

  • Current technology stack not optimized to drive growth or efficiency

  • Under-investment in technologies to serve next-gen customers

  • Significant tech debt and costly legacy system exist