Increasing the EBITDA of private equity portfolio company through digital enablement

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925088" target="_blank" >RIV/62156489:43110/24:43925088 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.57111/econ/1.2024.70" target="_blank" >https://doi.org/10.57111/econ/1.2024.70</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.57111/econ/1.2024.70" target="_blank" >10.57111/econ/1.2024.70</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Increasing the EBITDA of private equity portfolio company through digital enablement

Popis výsledku v původním jazyce

The study of the role of digital implementation in increasing earnings before interest, taxes, depreciation and amortization (EBITDA) in portfolio companies of private equity funds is a topical issue for the development of strategies and competitiveness. Thus, the main purpose of the study was to determine how private equities increase EBITDA in the portfolio companies via digital enablement. For the purpose of understanding the role of digital enablement strategies in value creation, the critical realism research paradigm was identified as the best-fit philosophy. The critical realism approach was chosen because it advances research methodologies through the development of a qualitative theory of causality. A sample of 26 respondents was used with semi-structured interviews being conducted. The data analysis process involved the identification of 3 themes through thematic analysis. Three themes were identified, namely new digital capabilities to improve top-line growth, driven by the Head of Strategy/Head of Department, and transformative initiatives. The results from all three themes indicate that digital enablement is useful in improving private equity firm revenue and EBITDA levels through digital transformation, improved customer engagement, and identification of market opportunities towards digital data capabilities. The findings show that redefinition is critical to improving EBITDA, as it challenges the existing model and provides a forward-looking approach to strategy formulation. Digital enablement strategies are an unexplored area in the context of private equity firms. The strategies are momentous in improving revenue levels and competitiveness while accentuating the EBITDA rates by cost reduction. The results of this study will be of practical use to both businesses and other economic entities.

Název v anglickém jazyce

Increasing the EBITDA of private equity portfolio company through digital enablement

Popis výsledku anglicky

The study of the role of digital implementation in increasing earnings before interest, taxes, depreciation and amortization (EBITDA) in portfolio companies of private equity funds is a topical issue for the development of strategies and competitiveness. Thus, the main purpose of the study was to determine how private equities increase EBITDA in the portfolio companies via digital enablement. For the purpose of understanding the role of digital enablement strategies in value creation, the critical realism research paradigm was identified as the best-fit philosophy. The critical realism approach was chosen because it advances research methodologies through the development of a qualitative theory of causality. A sample of 26 respondents was used with semi-structured interviews being conducted. The data analysis process involved the identification of 3 themes through thematic analysis. Three themes were identified, namely new digital capabilities to improve top-line growth, driven by the Head of Strategy/Head of Department, and transformative initiatives. The results from all three themes indicate that digital enablement is useful in improving private equity firm revenue and EBITDA levels through digital transformation, improved customer engagement, and identification of market opportunities towards digital data capabilities. The findings show that redefinition is critical to improving EBITDA, as it challenges the existing model and provides a forward-looking approach to strategy formulation. Digital enablement strategies are an unexplored area in the context of private equity firms. The strategies are momentous in improving revenue levels and competitiveness while accentuating the EBITDA rates by cost reduction. The results of this study will be of practical use to both businesses and other economic entities.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Economics of Development

ISSN

1683-1942

e-ISSN

2304-6155

Svazek periodika

23

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

UA - Ukrajina

Počet stran výsledku

8

Strana od-do

70-77

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85190646897