Digital technology and private equity Opportunities and risks for PE companies

February 13, 2020

It’s no secret - advances in digital technology are the hallmark of our times.  Known by several terms including the Fourth Industrial Revolution, Industry 4.0, or Internet of Things (IoT), industry experts define this era as the fundamental re-structuring of our economy and the re-defining of the very nature of our work through widespread adoption of ubiquitous technology in the form of mobile internet access, hyper-fast network, and artificial intelligence (AI).

These digital advances will lead to continued global growth across a range of industries and services – from manufacturing to financial services. These trends are no longer characterized by simply creating and using websites and mobile technology. They have rapidly moved from a ‘nice-to-have’ to a critical component of surviving and thriving, and the key is to understand the trends that affect your business and apply them to your operating model. From a private equity (PE) perspective, this is especially true.

Where do you start? How will digital technology affect your current and potential portfolio firms and what are the implications?  BDO breaks it down into the four digital technology trends that those in the PE world should consider.

Contact BDO’s Private Equity advisors to discuss preparing for digital trends in the industry.

Eric Matusiak, National Retail Leader, BDO Consulting – IT & Technology

Jamie Windle, National Private Equity Leader, Financial Advisory Services – Transaction Services

Vivek Gupta, National Leader, BDO Consulting – Cybersecurity