5 Reasons Private Equity Firms Should Embrace ERP Systems
June 12, 2023
June 12, 2023
In 2020, private equity companies began embracing special purpose acquisition companies (or SPACs). These entities, which have no commercial operations and are formed specifically to raise money for acquisitions, raised more than $80 billion from nearly 250 SPAC IPOs during 2020, six times the previous high of $13 billion raised in 2019.
The SEC’s evolving reporting requirements have slowed SPAC adoption in recent months, but market shifts like this are just one example of how PE firms continuously guard against economic uncertainty and risk as they plot exit strategies for their portfolio companies.
To overcome operational challenges and maximize the potential of their portfolio companies, private equity firms need accurate and comprehensive data on financial health.
However, many still rely on disconnected software and spreadsheets that ultimately hampers their scalability and efficiency.
On the flip side, Enterprise Resource Planning (ERP) systems offer a standardized solution for PE-backed businesses. This white paper, “How ERP Can Help PE Firms Standardize Their Portfolio Operations - Business Guide from Netsuite” goes in-depth on how ERP systems are advantageous for private equity portfolios.
We’ve distilled it down to the top five reasons why ERPs should be considered:
Read the full white paper to go deeper on how standardizing a portfolio on a common ERP system significantly boosts a PE firm’s ability to measure costs, track growth, improve operational efficiency and reach profitability goals. It also provides guidance on choosing the right ERP for your organization.