To win in the current market, PE firms need an edge. For many companies, data science and machine learning are uncovering new insights about potential sources of value for both targets and portfolio companies–providing the edge they need for bidding and successful post deal execution.
Using data science techniques and innovative technologies like AI and machine learning, PE firms can integrate data from a variety of sources, conduct more complex and sophisticated analysis, and develop smart models that provide deeper and more valuable insights – at deal speed.
Embracing data science can help PE firms at every deal stage. Pre-deal, PE firms can use data science to combine target-provided data with external data sets to fuel robust data analytics and predictive models so they can uncover hidden value and make more competitive decisions. Post deal, PE firms can use data science to improve asset and portfolio value, identify and drive performance improvements, enhance revenue, and optimize their cost structure.
A fully integrated data science approach will include the right combination of people, processes, technology and tools, and data sources. PE firms need to consider whether to build these capabilities in-house or to partner with an external specialist firm. Making a decision to build or buy data science capabilities is an important strategic direction that requires careful consideration.
To find out more about data science, the advantages it offers to PE firms, and how companies can integrate data science into their deal process, read the full report.