For a start-up or SME, private equity firms can be the jewel in the crown when it comes to upscaling their business or expanding their proposition. Private equity investors allow a business to truly realise its potential by injecting some cash in the hope that as the business grows, the investors will get a return.
With all businesses now being online in some form or other. The IT systems of any business are extremely valuable due to the use of data. But also, it needs to be extremely secure, as with the rise of cyber-attacks investors need to know the business is not open to attack, plus has the right systems in place to enable to business to grow.
Therefore, one of the first things any investor should do before agreeing on a cash injection is to look at its IT capabilities and determine whether they support the overall business objectives.
If a business technology is up to date, secure and scalable to the overall business aims, an investor can see the value and feel confident in providing the cash. If the technology the business uses is behind the times, not as secure as it could be and not flexible to help with the business objectives. It could be seen as not as good an investment and your business could miss out on much-needed funds.
In addition to IT systems, the investor needs to consider what software solutions the business has in place in order to grow and deal with more customers. This is a serious issue for an investor as that is the whole point of the investment. Having bespoke software in place is critical for your sales force, and in this online world, essential for website sales or app development etc.
Technology, as we know, changes very quickly and it is critical that the business can keep up with the changes in operations, infrastructure, policies and are secure from cyber-attacks. This all helps ensure the investment is sound for everyone involved and the business has the right IT foundations to help its ambition. Read here how to get the right IT foundations in place.
Greystone: Making sense of IT and software solutions