Value Creation For Enterprise Software Portfolio Companies – A Private Equity Perspective

Historically, Private Equity (PE) firms have employed the Buy & Build strategy, with a philosophy of buying, fixing, and holding assets – with a plan to sell at the right time. However, for enterprise software companies, an increasing amount of value has been created by going beyond quick-fix initiatives to leverage multiple value creation levers and by capitalizing on digital transformation. A growing number of PE firms are now expanding their focus to accelerate product modernization, invest in product line expansion, and optimize engineering talent for their portfolio companies.

Some of the key trends in the Enterprise Software space from a PE perspective, include –

  • A shift from cost to efficiency
  • A shift in focus on time-to-market and talent strategy
  • Aligning product roadmap with growth plans
  • Role of ecosystem partnerships

At a recently concluded Zinnov-Persistent Private Equity Leadership roundtable, we had senior leaders from across global PE companies share their perspectives on the winning value creation levers for the enterprise software sector, the differentiated talent strategy to maximize the potential for enterprise software companies, the key challenges that PE leaders face while executing transformation initiatives, and other key dimensions.

Here’s a snapshot of the trends and insights that emerged from this discussion.

Value Creation For Enterprise Software Portfolio Companies – A Private Equity Perspective

To know more about the value creation levers to maximize the potential of enterprise software companies, write to us at info@zinnov.com.

Summary
Value Creation For Enterprise Software Portfolio Companies - A Private Equity Perspective
Article Name
Value Creation For Enterprise Software Portfolio Companies - A Private Equity Perspective
Description
Here's a snapshot of how Private Equity firms are leveraging certain key value creation levers for their enterprise software portfolio companies.

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