Why Private Equity Firms Need an IT Transformation Advisor Now More Than Ever
- Richard Keenlyside
- 2 days ago
- 4 min read
TL;DR:
Private equity investors face increasing pressure to deliver rapid value. Leveraging a seasoned Private Equity IT Transformation Advisor, such as Richard Keenlyside, provides a strategic edge during due diligence, carve-outs, integrations, and exit planning. Learn why digital maturity is no longer optional.
Introduction: The New PE Imperative
The private equity (PE) landscape has evolved. Today, successful investments hinge not only on sound financials but also on digital maturity, scalable infrastructure, and post-acquisition integration readiness. As a Private Equity IT Transformation Advisor, I’ve witnessed first-hand how technical clarity can define the success—or failure—of a transaction.
Gone are the days when IT was seen as a back-office function. In 2025, it’s central to value creation.
What Is a Private Equity IT Transformation Advisor?
An IT Transformation Advisor provides strategic guidance throughout the PE lifecycle. From pre-deal IT due diligence to full-scale digital transformation post-close, they:
Identify risks in legacy infrastructure.
Evaluate ERP and cloud migration readiness.
Design scalable, secure operating models.
Accelerate synergy realisation in mergers.
Provide governance frameworks for rapid change.
Their focus is simple: help the fund protect and multiply value.
The Hidden Risks in Tech Debt
In my advisory work with PE-backed organisations across sectors—manufacturing, retail, logistics, utilities—I've seen the silent killer: technical debt.
During a recent engagement with a global manufacturing group, £2 million in avoidable legacy server costs was identified. A strategic pivot to Azure infrastructure saved millions while enabling data standardisation across 5 countries.
Lesson? Digital friction slows your exit timeline.
Maximising Exit Value with IT Transformation
Your investment horizon is typically five to seven years. But how do you command a higher multiple at exit?
You do it by building a scalable and digital-ready business. A Private Equity IT Transformation Advisor will:
Align tech with commercial goals.
Drive process automation (RPA, AI, ML).
Establish data analytics capability for real-time reporting.
Build integrated ERP/CRM ecosystems (SAP S/4HANA, Oracle Fusion, NetSuite, D365).
At a retail client, I led a global ERP transformation that removed £2.9M in recurring technical costs and enabled better cash flow forecasting. These are the levers buyers value.
Due Diligence Isn’t Just Financial Anymore
IT due diligence is now as critical as financial or legal reviews. The right advisor evaluates:
Cybersecurity vulnerabilities
Application landscapes
SaaS contract viability
Integration effort of target acquisitions
For a US automotive carve-out, my role involved presenting post-separation IT options directly to the acquiring firm—saving time and preventing scope creep during Day 1 readiness.
Post-Acquisition Tech Integration: Sink or Swim
Integration is where most deals falter. Whether it’s a carve-out or bolt-on, having a transformation advisor early means:
IT leadership is embedded in value creation plans.
Change management and talent retention are addressed.
Outsourcing, licensing, and security are stabilised from day one.
When I transitioned a Northeast food manufacturer to Adobe Commerce, Oracle SaaS, and HubSpot CRM, we delivered a 40% efficiency improvement and slashed supplier payment delays by 29%. That’s operational uplift you can model into EBITDA.
What PE Firms Should Demand from an IT Transformation Advisor
Look beyond certifications. You want someone who has:
Executed global ERP, cloud, and cybersecurity projects.
Advised across sectors like retail, manufacturing, and utilities.
Sat at the board table during crisis and growth.
Led carve-outs, integrations, and tech turnarounds.
As someone who’s advised for Endava, overseen the Gamestation acquisition for Game UK, and transformed Mothercare through a £40M programme. These experiences are non-negotiable when advising at the intersection of capital and technology.
Sector Experience Matters
Every vertical has its quirks. In oil and gas manufacturing, traceability and testing compliance are paramount. In retail, it’s eCommerce and customer data. In utilities, regulatory audits dominate.
A Private Equity IT Transformation Advisor with multi-sectoral breadth enables faster onboarding, fewer surprises, and tailored strategies.
Cybersecurity Is Not Optional
Regulators, buyers, and LPs demand it. If your portfolio company lacks penetration testing, SOC integration, or staff awareness training, your entire investment is exposed.
At LoneStar Group, we rolled out comprehensive cybersecurity enhancements across all territories—UK, UAE, US, China, India—ensuring compliance and resilience from the boardroom to the shop floor.
Conclusion: Tech-Driven Value Creation Starts with the Right Advice
Today’s market conditions reward proactive transformation. In the hands of the right Private Equity IT Transformation Advisor, IT becomes your fastest lever for scaling operations, reducing costs, and enhancing exit valuations.
Don’t wait for diligence to reveal your weaknesses. Embed strategic IT thinking from day zero.
FAQs
Q1: When should a Private Equity firm engage an IT Transformation Advisor?
A: Ideally during target evaluation. Early involvement ensures robust IT due diligence and smooth Day 1 transitions.
Q2: What systems should PE-backed companies prioritise?
A: ERP (e.g., SAP, Oracle, NetSuite), CRM (HubSpot, Salesforce), and business intelligence platforms like Power BI.
Q3: What are the top risks in post-acquisition IT integration?
A: Misaligned systems, lack of change management, cybersecurity gaps, and underestimated integration timelines.
Q4: How is value quantified from IT transformation?
A: Through cost reduction, revenue uplift (via digital channels), improved compliance, and operational scalability—direct EBITDA impact.
Richard Keenlyside is the Global CIO for the LoneStar Group and a former IT Director for J Sainsbury’s PLC.
Call me on +44(0) 1642 040 268 or email richard@rjk.info.
Follow me on X https://x.com/cioinpractice & LinkedIn https://www.linkedin.com/in/richardkeenlyside/.
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