For Mid-Market Private Equity, Data Intelligence Impacts Valuation - AVOID These Two Mistakes

"If you want to motivate employees, stop following your instincts and adopt a data-driven approach." - Harvard Business Review

Data is trending, and while deal teams increasingly give lip service to the importance of data-driven operations, their tactics often miss the mark.  Of the hundreds of companies we've consulted for, nearly all default to Excel spreadsheets, PowerPoints, and PDFs to promote data intelligence.  

For Mid-Market Private Equity, Align Deal Teams and Executive Teams with Company Scorecards

"Transparency is not just a buzzword; it may be a necessity for business survival in the 21st century." - Glassdoor

Successful execution is what matters most, even if the model has been around for decades. Airbnb wasn’t the first clearinghouse for C2C home rentals, but its execution was unprecedented.  Excite, Yahoo, and Ask Jeeves came first, but none delivered as successfully as Google.

For Mid-Market Private Equity, Data Intelligence is THE Critical Path to Growth

“If you want to improve the quality of performance in any area, improve or increase the frequency of the feedback.” — Charles Coonradt, The Game of Work

Managing a portfolio of companies can feel more like controlled chaos than strategic execution. Rather than spending time on key partnerships, hires, and acquisitions, deal teams are often consumed chasing down performance data in an effort to understand what's happening on the ground. Why? Because manually harnessing data is often a herculean task that interferes with daily operations.

For Private Equity, Data Chaos = Value Depletion

Middle market private equity firms share a common denominator: their portfolio companies rely on a menagerie of software platforms to manage finances, sales, locations, product lines, services categories, ad nauseum. 

Private Equity Turns to Business Intelligence to Maximize Investments

Private Equity investors make investment decisions based on balance sheets and P&L statements – typically in Excel, the tried-and-true tool of choice. Yet PE firms struggle to keep up with running the real-time reporting race needed to analyze companies post-acquisition. Portfolio companies are often saddled with multiple ERP systems and fragmented financial and operational data. Too many reports originate from too many disparate sources, and there’s too little time to separate signal from noise.