CHICAGO , Sept. 19, 2024 /PRNewswire/ -- Liberty Advisor Group has released a new insight exploring the crucial role of technology diligence in business success. It highlights how a thorough evaluation of technology investments can help organizations mitigate risks, maximize results, and drive sustainable growth.
As of the first half of 2024, middle-market private equity (PE) firms hold a record $2.6 trillion in dry powder, presenting both opportunities and challenges. With high interest rates limiting large-scale buyouts, many firms have shifted focus to add-on acquisitions and operational and technological enhancements within existing portfolio companies.
This strategy allows for incremental value creation and operational strengthening to weather economic uncertainty. The importance of both buy-side and sell-side technology diligence underscores the value of robust integration and carve-out strategies, where applicable. Technology Integration Management Offices (IMOs) ensure smooth transitions, operational efficiencies, and system rationalizations, while Separation Management Offices (SMOs) executing carve-outs—whether into existing operations or as a standalone entity—ensure the entity can continue to operate seamlessly and is well-prepared for post-separation success.
Firms that excel in these areas will stand out in the evolving market, delivering strong returns and building sustainable value. Mark Boushka , Partner at Liberty, explains: "Technology diligence is esse.