Improving Margins and the Exit Multiple with Smart Tech In PE

Solo episode with Bruce Sinclair, the host of the show, discussing how smart digital can enable predictive maintenance for margin improvement and data-driven business models to increase the exit multiple. In businesses where maintenance has a meaningful impact on margins, we can use artificial intelligence to predict when assets will fail in advance of any noticeable signs of a problem.  By using smart digital to prevent unplanned downtimes, we increase the company’s operational efficiency to improves its margins, for a relatively low investment in tech. Collecting proprietary monetization data enables the development of novel business models that until recently, were impossible to deploy.  Moving from one-and-done product sales to sales that recur to continuously generating revenue are rewarded by the next buyer paying a higher EBITDA multiple. In this episode, Bruce discusses: How margins are improved indirectly and directly. Using smart-tech-driven operational efficiency to improve margins. How to deploy predictive maintenance to minimize unplanned down times. The three different ways smart digital can increase the EBITDA multiple. The concept of data-driven business models and how they are created. The example of the power-by-the-hour business model developed by jet engine maker Bristol Siddeley and deployed by GE and others. Related links you may find useful: Article 1: Margin Improvement with Predictive Maintenance  Article 2: Deploying Data-Driven Business Models for Multiple Expansion LinkedIn newsletter containing these and other articles Season 1:Related episodes  Season 2: Episodes and show notes Season 2 book: The Private Equity Digital Operating Partner Season 1 book: IoT Inc Training: Smart  digital transformation certification

Om Podcasten

This talk show is about the next big thing in value creation. It is for fund managers and corporate leadership investigating smart digital transformation for their companies, and for service providers, subject matter experts and vendors wanting to broaden their digital skills. Although the show’s focused on value creation in the context of private equity, it’s sector agnostic and can get pretty geeky, digging into IoT, data science (analytics & ML) and other high technology. At a high level, the show is about how to frame the digital investment thesis and how to execute it. Your host, Bruce Sinclair, is an ex-PE operating partner who has written the best-selling books, The Private Equity Digital Operating Partner and IoT Inc, and has certified thousands of professionals with his ICIP program and LinkedIn Learning courses. Season 1 of this show was called, The IoT Inc Business Show.