Up to 65% increase in value through digital investments: The path to exceptional returns through innovation
Sebastian Esser
28 March 2024
“Digital is at the heart of private equity today. At Bridgemaker, we see how the combination of (digital) venture building with PE strategies not only increases process efficiency but also enables innovative breakthroughs that fundamentally transform portfolios.” (Ronja Hohls, Project Lead)
Digitization is a necessity, not a luxury
Digital value creation is not an empty promise – it is an achievable goal for any private equity firm willing to use innovation as a guide for sustainable growth and long-term value creation. Digitization is no longer a luxury, but a necessity. In a world where digital assets are becoming increasingly important, B–M is the strategic partner that guides PE firms safely through the challenges of digital transformation.
Up to 65% increase in asset value
As a partner for digital value creation, B-M supports PE firms from the initial investment to planning an appropriate exit strategy. Our approach is based on proven methodologies and targets value creation that can increase asset multiples by up to 65%. B-M supports PE professionals through the PE Execution Studio, which turns strategic vision into tangible results by delivering value directly to portfolio companies.
The three-step plan for digital maturity
Our approach to enhancing your company’s digital maturity follows a clear three-step plan:
1. Assessment: A thorough analysis of your company's current digital maturity based on our specific questionnaires.
2. Derivation: Based on the results of the questionnaires, we jointly identify with you the areas where your portfolio company needs support and where the greatest opportunities for digital value creation lie.
Digital Vision & Strategy: Maximizing digital growth potential through a clearly defined vision and specific OKRs.
Digital Trends, Opportunities & Risks: Understanding the digital environment, trends, and future technologies to seize opportunities and mitigate risks.
Digital Products & Services: Leveraging the digital strength of your offerings to enter new markets with well-developed innovation concepts and establish new, sales-boosting products and services in existing markets.
Digital Customer Engagement: Developing strategies to reach your customers where they are most active – in the digital space.
Operational Excellence & Automation: Optimizing internal processes to make your core business faster and more efficient.
Digital Infrastructure & Data Management: Laying the foundations to transform data into tangible results.
Digital Organization & Work Practices: Accelerating growth through targeted talent acquisition, team optimization, expert knowledge, and efficient project management.
3. Operationalization: In the final phase, we implement the developed strategies together with you in workshops to achieve measurable results and sustainable value enhancement.
Case Study: All4Labels
All4Labels, a portfolio company of Triton, doubled its operational efficiency through digital innovations within two years. Adrian Tippenhauer, CEO of All4Labels: “Our digital transformation was crucial, particularly through the establishment of the digital venture Palamo as a startup twin of our core business under the leadership of Bridgemaker. This significantly accelerated our EBITDA growth and established us as a pioneer in a new market segment – a critical factor for the impressive development of All4Labels.”
Achieving market leadership through digitization
For private equity firms, the use of digital tools throughout the investment cycle is not just an opportunity for value enhancement, but a transformative restructuring that redefines the value chain. Collaborating with digital experts provides deal captains with essential resources to effectively implement growth strategies and generate significant returns.
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