Due Diligence Validates Growth Potential for SaaS-Based Technology Platform
Due Diligence Validates Growth Potential for SaaS-Based Technology PlatforM
A fast-paced due diligence revealed opportunities for tactical value creation by Private Equity with $40B AUM with Software Company in pharma regulatory platform with the potential to expand add-on capabilities for FDA compliance.
Private Equity needed to understand the scalability of platform to support future growth.
A growth-first due diligence evaluation of platform helped Private Equity investment team understand key strengths and opportunities for growth potential, as well as identified risks.
The discovery validated portfolio’s ability to go to the next level, supporting a future acquisition strategy with actionable intelligence for the value creation roadmap.
How Far Will Platform Scale?
Identifying red flags is central to IT due diligence. Yet in the context of today’s digitally transformed world, private equity firms and portfolio companies need to take due diligence a step further to identify opportunities for technology-driven value creation. This was exactly the goal behind the due diligence project. The private equity firm and portfolio both realized that the platform, while already successful, held far greater potential. With the commitment to uncovering value, Kratos Partners was an obvious choice to perform the due diligence of pharma regulatory platform. It was this question – how far the platform could scale – that drove the value creation evaluation through due diligence by private equity and portfolio.
Defining A Customized Due Diligence Scope
Working closely with portfolio and Private equity, Kratos Partners surveyed the business applications, IT organization, governance, and IT infrastructure.
Kratos Partners’ diligence team took a deep dive into platform’s proprietary application to assess functionality, current capabilities, scalability, growth trajectory potential, and investment requirements.
Key to uncovering opportunities for Private Equity and portfolio were the 12 stakeholder interviews, which helped identify IT organizational needs.
Due diligence insights can reveal rapid value creation.
Kratos Partners presented a clear assessment of the platform in executive summary report. It highlighted how the organization’s creation of custom-written proprietary systems and implementation of commercial applications differentiated both the product and platform’s growth potential. After examining the proprietary applications, business applications, IT organization, technical infrastructure, and security posture, Kratos Partners confirmed what both private equity and target hoped: Pharma Regulatory platform was ready for scale.
Actionable Insights driving Value Creation
Uncovering potential is key to building business momentum that drives value creation. That’s why Kratos Partners’ due diligences align the technology assessment to actionable next-steps. With the summary and recommendations in hand, private equity and the target were ready to build a value creation roadmap. By providing real-cost estimates and defined recommendations, Kratos Partners makes it easy to make those decisions rapidly and helps to implement those next steps at speed using the knowledge uncovered during discovery with technology implementation
