Hong Kong city view

Investors & Private Equity

To maintain a competitive edge and create sustainable value for their investors, the private equity sector will need to take advantage of digital innovations both internally and throughout the selection and management of portfolio companies

Private equity firms require a sustained digital transformation   

According to industry studies digitalization has been named as the most important trend influencing private equity houses. The influence of digital transformation comes as no surprise, as digitalization is changing the way all industries do business. From healthcare to manufacturing to software and retail, customer expectations are changing, requiring business models to adapt accordingly — the pace at which technology is advancing demands a fast response. COVID-19 is even accelerating the pace in which companies must redefine the digital value creation potentials and explore new, unbureaucratic ways to stay ahead of competition.

To maintain a competitive edge and create sustainable value for their investors, the private equity sector will need to take advantage of digital innovations both internally and throughout the selection and management of portfolio companies.

Empire State Building

The top challenges private equities encounter

  • Investors, who do not include digitalization as part of the due diligence process, run a risk of missed opportunities and value traps. To have a full understanding of a company's prospects and position, investors need to understand where the company and its competitors stand in the digitalization process and understand the value creation potentials  
  • A research has shown that while 71% of private equity firms surveyed are aware of the availability of using new digital channels, only 29% have done so1
  • The digital transformation is going to threaten traditional business models and requires portfolio companies to be well prepared for digital disruptions and adapt to the market accordingly
  • Due to the fast pace at which technology is advancing, private equity firms need to view the digital transformation as a new opportunity for value creation that would allow portfolio companies to reach their fullest potential 

Various opportunites to help in creating digital value

Digital due diligence

Traditional commercial and financial due diligence is expanding to include a digital component to the process

Better evaluation

By putting the focus on digital, private equity firms can have a highly effective way to deliver efficiency improvements, revenue, and earnings growth, and ensure a high pricing multiple at exit

Identifying the potential early

To prepare for the digitalization of portfolio companies, private equity firms need to start thinking about possible digital transformation processes prior to the due diligence stage

Boost portfolio companies

The digitalization of portfolio companies would allow them to experience faster support, to track customer satisfaction, and to facilitate omnichannel sales due to personalized marketing

Building further value

Portfolio companies could provide new products and services, achieve competitive cost performance, and fine-tune their commercial strategies, with provided digital transformation opportunities

Our expertise

As an experienced partner in digital transaction advisory, we identify, analyze, and evaluate digital targets and their potential, as well as performance improvement opportunities. By combining our inimitable capabilities in digital strategy, operations, technology, and digital marketing and leveraging our data and cross-functional team, we steer the complexity of transactions. Based on well-researched and integrated views and data insights, our analyses cover all aspects of the transaction, on both the buyer and seller side during a vendor due diligence (VDD). The thorough evaluation allows us to provide highly customized, commercial, and digital transaction support to both private equity and corporate investment clients as well as their portfolio companies.

Our international team has assisted >700 realized projects in digital strategy, digital operational excellence, data science, and transaction advisory services. With a team that speaks over 20 languages, and a 50% female-male ratio, we ensure both effective communication and representation throughout the advisory process.

New York City

Our Investors & Private Equity Experts

Private Equity Portfolio Clients

Industry Insights

Filter options

Articles

CME stock on laptop
Digital maturity of investments
Digital Due DiligenceTransaction AdvisoryPrivate Equities & Investors

Investors should examine the status quo of a target company’s digital maturity. This can be done within a Digital Due Diligence by focusing on five crucial points.

Read more
Hacker binary attack code
Private Equity Funds as Drivers of Digitalisation
Private Equities & InvestorsTransaction Advisory

Many companies are struggling with digitalisation. Private equity firms now always conduct digital due diligence tests in order to evaluate the associated potential for value creation.

Read more
Car light trails on Sea Cliff Bridge, Australia
Why to perform a digital due diligence
Digital Due DiligenceTransaction AdvisoryPrivate Equities & Investors

Digital business models are not only becoming overwhelmingly important for consumers, but to the same extent valuable for investors. Established consulting firms are facing challenges when it comes to questions around “digital,” and experts are…

Read more

News

OMMAX advised ICG on the successful partnership with Exxeta
OMMAX Advised ICG on the Successful Partnership With Exxeta
Transaction AdvisoryCommercial Due DiligencePrivate Equities & Investors

OMMAX supported ICG, the global alternative asset manager, on becoming a partner of Exxeta, a leading German digital transformation services provider.

Read more
OMMAX advised Essity on the successful acquisition of Knix Wear Inc.
OMMAX Advised Essity on the Successful Acquisition of Knix Wear Inc.
Transaction AdvisoryCommercial Due DiligenceDigital Due DiligencePrivate Equities & Investors

Knix Wear Inc. (“Knix”) is a leading provider of leakproof apparel for period and incontinence. As a first mover in leakproof intimates, tops and activewear, Knix has established a particularly strong presence in its core markets Canada and the USA.…

Read more
OMMAX advised Ergon Capital on the acquisition of the 360° Padel Group
OMMAX Advised Ergon Capital on the Successful Acquisition of 360° Padel Group
Transaction AdvisoryDigital Due DiligenceTechnical Due DiligenceCommercial Due DiligencePrivate Equities & Investors

The 360° Padel Group is the largest specialized padel platform globally and the owner of “Siux”, a renowned premium padel brand. Headquartered in Madrid, the group was founded in 2010 and rapidly expanded into the largest specialized padel platform…

Read more
FINANCE Magazine logo
Digital Due Diligence: The Untapped Private Equity Potential
Transaction AdvisoryDigital Due DiligencePrivate Equities & Investors

Digital business models have long been popular with private equity investors, and digitalisation is an important value-enhancing tool. However, financial investors are still not getting the most out of their portfolio companies.

Read more
OMMAX advised Bencis on the acquisition of Höfer Chemie
OMMAX Advised Bencis on the Successful Acquisition of Höfer Chemie
Transaction AdvisoryCommercial Due DiligenceDigital Due DiligenceTechnical Due DiligencePrivate Equities & Investors

Höfer Chemie is a strongly growing online D2C household specialty chemicals brand, especially in Germany and France. Over the last years, Höfer Chemie grew consistently and profitably as it caters with its portfolio to the increasing demand for…

Read more
OMMAX advised AURELIUS on the sucessfull acquisition of dental bauer and Pluradent
Ommax Advised AURELIUS on Acquiring dental bauer and Pluradent
Digital Due DiligencePrivate Equities & Investors

OMMAX supported the AURELIUS Group on the successful acquisition of dental bauer GmbH & Co. KG and Pluradent GmbH & Co. KG, two leading distributors of dental equipment based in Germany.

Read more

recommend by OMMAX

OMMAX supported The Quality Group GmbH on the sale to CVC
OMMAX Advised the Quality Group GmbH on the Successful Sale to CVC
Vendor Due DiligenceCommercial Due DiligencePrivate Equities & Investors

OMMAX supported The Quality Group GmbH, the leading group of multiple sports nutrition and dietary supplements brands in the DACH market, on the sale to CVC.

Read more
OMMAX advised Bibliotheca Group on the arrangement of debt refinancing with Apera Asset Management
OMMAX Advised Bibliotheca Group on Its Refinancing Round With Apera
Digital Due DiligenceCommercial Due DiligencePrivate Equities & Investors

OMMAX advised Bibliotheca Group on the arrangement of debt refinancing with Apera Asset Management, supporting it on its further growth trajectory. Bibliotheca is a leading provider of security and productivity hardware and software, digital content…

Read more
OMMAX advised Cathay Capital on the minority stake acquisition of SNOCKS
OMMAX Advised Cathay Capital on Acquiring a Minority Share in SNOCKS
Digital Due DiligenceCommercial Due DiligencePrivate Equities & Investors

OMMAX advised Cathay Capital on the acquisition of a minority share in SNOCKS, a strongly growing D2C basic apparel brand in the DACH region. Over the last years, SNOCKS grew consistently and profitably as it caters with its basic apparel portfolio…

Read more