Technology as a key value driver in Private Equity

Why technology matters more than ever in equity stories

In Private Equity, technology fuels digital transformation and unlocks value across industries. Investors now expect equity stories to clearly show how IT drives efficiency, growth, and resilience.

Making technology visible and measurable

Technology is often the missing link in equity stories. Despite its crucial role, IT remains invisible or fragmented in many companies, leaving investors uncertain about its true contribution.

Research shows that between 20% and 40% of the value of a company’s technology estate is tied up in “tech debt principal” — legacy systems, deferred maintenance, and outdated interfaces that weigh on performance (source: McKinsey, Highwing).

These redundant or obsolete assets create unnecessary complexity, inflate costs, and divert developers’ time from innovation to maintenance. The result is slower growth, higher risk, and weaker investor confidence.

The solution? Make technology visible and measurable. By establishing clear baselines and linking IT performance to EBITDA and productivity metrics, companies can turn technology from background noise into a tangible, credible driver of shareholder value.

Building an IT Equity Story that investors can trust

An IT equity story convinces only when it translates technology into concrete facts investors can price.

Our approach focuses on what investors scrutinise during due diligence:

• IT cost structure and spending breakdown
• Organisational design and operating model fitness
• Roadmap credibility and execution risk
• Growth levers directly linked to technology

This crafts a narrative that distinguishes IT as a background enabler from IT as a valuation driver.

In the high-stakes race for returns, companies that make IT tangible win investor trust and position themselves for a more agile, scalable future.

Core pillars of a rigorous IT equity story

Here are the four pillars to creating a strong IT equity story.

1. Cost Baseline & Efficiency
   Map IT spend by infrastructure, applications, personnel, and vendors to reveal inefficiencies. This enables targeted savings—from vendor renegotiations to automation—flowing directly into EBITDA.
2. Roadmap & Execution Credibility
   Move beyond glossy strategy slides. Stress-test initiatives against budgets and dependencies, define clear milestones, and transparently show delivery risks. Investors want confidence in what can realistically be executed.
3. Operating Model & Capabilities
   Assess IT governance, sourcing, and skills to identify risks that could hinder growth or increase costs. A fit-for-purpose model assures investors the technology function supports scale and resilience efficiently.
4. Technology as a Growth Enabler
   Frame investments in automation, AI, data platforms, and analytics around their measurable impact on revenue and margins. Show that IT is not just a back-office function but a direct contributor to growth and valuation uplift.

Case study: maximising LBO exit value through IT transformation

In a recent engagement with a service company preparing for a Private Equity exit, we helped shape a clear IT equity story centred on efficiency and scalability.

Key outcomes included:

• Rationalisation of over 120 IT applications, decommissioning 40% to reduce complexity and cost
• Design of a new IT operating model aligned with growth objectives
• Definition of a Data and Innovation hub to drive predictive analytics and automation
• Identification of performance levers linked to a 15% productivity gain target

These initiatives created a strong baseline for the incoming management team and enabled a compelling investment narrative linked to maximised shareholder value.

How the right partner translates tech into investor confidence

In Private Equity, valuation is driven by execution certainty, not just growth potential.

Working with a partner who bridges M&A and deep technology expertise is essential. Translating architectural choices, operating model design, and data strategy into investor language turns technology from a black box into a visible lever of value.

At Onepoint, we combine technical depth and deal experience to ensure technology is front and centre in the equity story—not an afterthought.

Ready to elevate your IT equity story?

Contact our experts to learn how to build a technology narrative that boosts valuation, builds investor trust, and accelerates successful exits.