As a leader in the middle-market private equity space for 15 years, Boyne Capital has helped hundreds of businesses grow and prosper through good times and bad. We’ve seen it all and one thing is clear, if your business isn’t growing, you’re probably falling behind – pointing the way to a sale, acquisition or other growth strategy. And that’s where a full-service financial partner such as Boyne Capital plays such an important role.
No two businesses are alike; each has its own unique challenges. This is why Boyne provides an array of financial, operational and management services to our portfolio partners. Delivering the financial muscle to accomplish a client’s strategic plan is just the start of what we do. Whether it’s providing the expertise to overhaul logistics, optimize production, expand product development or sharpen financial reporting, Boyne works side-by-side with its portfolio companies to execute a winning game strategy. This might also mean utilizing the expert resources of partner consultancies in adjacent specialties.
When exiting a business, acquiring one or embarking on a major growth initiative, companies must critically assess their strengths and weaknesses from top to bottom. In that analysis, they sometimes overlook the importance of the digital technologies they employ to make their business run. The Digital Practice leaders at Elliott Davis LLC (one of Boyne’s valued business solutions partners) offer their insights on the importance of technology systems maintenance, optimization and security. Armed with their takeaways on technology stewardship, you’ll be in a much stronger position for that next leap in your company’s evolution. Read on for more…
The Importance of the Technology Stack for Business Owners and Buyers
courtesy of Elliott Davis LLC
Technology integration is a critical component of any merger or acquisition and can be one of the most daunting efforts to undertake. As mergers and acquisitions have become larger and more complex, digital technology, or the technology stack of an organization, can affect both the appeal of an acquisition and the success of the post-deal period.
A technology stack is the sum of technologies a company uses to build and run the business. It includes servers, applications, programming languages, front-end and back-end tools, databases, and frameworks. It also incorporates how every element of technology is connected and integrated to optimize business processes, vendor relations, and customer service.
If the technology stack has issues, it can make or break deal value.
When a selling firm has a client-focused, modernized technology stack that supports a smooth and seamless transition, it’s a highly attractive factor to buyers. We are often asked how an organization can leverage their technology stack and showcase its ability to meet the needs of a buyer and the new organization. The keys are Maintenance, Optimization, and Security.
Maintenance
Back-end systems are the underlying infrastructure that powers the front-end user experience. Proper servicing of technology and staying current are critical to business operations. Continual maintenance can identify problems, such as data loss, before they arise or get severe and have an impact on continuity and productivity. The main benefit is to circumvent emergencies and stop the system from failing by taking preventative measures.
Optimization
Optimizing the technology stack and specifically identifying areas of improvement can improve the efficiency of the business. This can include identifying more appropriate solutions, correcting inefficiencies in operational processes, workflows and its people, or leveraging the technology stack to improve collaboration and cross-discipline productivity. Simply put, the technology stack design and optimization should align to the business needs.
Security
The rise of cyberattacks and cyber threats since 2020 is staggering. Companies of all sizes and across every industry are potential targets, everyone is susceptible. A look at the security and compliance of an organization’s technology during due diligence has become a priority. Designing a comprehensive cyber defense strategy begins with analyzing your current security posture. This is completed by leveraging a known cybersecurity framework and rating your program maturity. Those whose rating is higher will certainly be more appealing to the buyer.
Technology integration can be one of the most difficult parts of a transaction and although every organization and individual will have their own preferences to processes and systems, the maintenance, optimization, and security of a technology stack can play a critical role in valuing the deal. It enables streamlined interoperability between technology infrastructure and allows buyers and investors to look beyond the transaction and focus on top line growth.
Most recently Elliott Davis helped an organization during Covid-19. Hit with a worldwide pandemic, the organization wanted to quickly respond to rising market opportunities. However, the company also realized that their technology was outdated and poorly maintained, limiting the company’s ability to respond and adjust. Elliott Davis was able to help the company properly update and optimize their technology and create an integrated, scalable and secure solution. This allowed the organization to be more agile and take advantage of top and bottom-line growth opportunities.
What our people know, how we process work and our vast network of relationships all combine to deliver world-class advice and practical solutions. Visit elliottdavis.com for more information.
Elliott Davis LLC is a leading business solutions firm offering a full spectrum of services in the areas of tax, comprehensive assurance and consulting services to diverse businesses, organizations, and individuals. Our Digital Practice focuses on helping organizations make good technology decisions to effectively manage risk, secure data, and optimize business operations.
Takeaway
Prioritizing the technology stack is sound advice from some savvy business solutions professionals. What other contributors (or inhibitors) to success should you be examining? Boyne can help with a top to bottom analysis of your business, bringing in subject matter experts in accounting, legal, regulatory compliance, HR and other disciplines as needed to give you the complete picture. Boyne will also provide the financial underpinnings to see you through the next stage. Give Boyne Capital a call to help you evaluate where you are and where you should be going.
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