Assess Digital Potential

Unlocking the potential of digital through diligence

Understanding the digital potential of an asset both prior to (and during and after) its purchase or sale is a crucial step toward assessing its true value, one that helps private equity investors and the companies they’re investing in make better, more data-focused decisions. At L.E.K. Consulting, our process involves evaluating an organization's capabilities — and its degree of readiness — when it comes to leveraging and adopting digital technologies and strategies as compared to those of its peers by seeking answers to the following questions:

  • Which digital technologies, platforms, or software does the target company own or use? How advanced is the company in terms of digital transformation and maturity? What are its plans for future digital projects and innovations?

  • What portion of the target company's revenue is generated through digital channels or digital products? How does it collect, manage, and leverage customer data for marketing and personalization?

  • Which cybersecurity and data protection measures has the target company put in place to safeguard its digital assets and the customer data it’s gathered?

  • Does the target company have strategic partnerships or collaborations within the digital ecosystem?

  • What is the level of digital talent and digital culture within the organization? 

  • What digital-related risks or challenges might be associated with the acquisition, and how can they be mitigated? How can they continue to me mitigated on an ongoing basis?

How we help with digital diligence

  • Rapidly evaluate digital performance, identify areas for improvement, and conduct a risk assessment 

  • Digitally benchmark the target company’s core digital skills vs. those of its peers

  • Conduct a digital opportunity assessment for increasing market share or creating new markets

Your benefits

For three decades, L.E.K. Consulting has worked alongside our private equity clients and their target companies to provide comprehensive support across the full transaction cycle. By combining this unparalleled level of support with our digital and technological aptitude, we enable you to use data to:

  • Improve your decision-making process for pricing assets  

  • Understand the digital market potential 

  • Streamline technology integrations for your portfolio companies 

Case examples: unlocking the potential of digital through diligence

To learn more about how we help clients unlock the potential of digital through diligence, please refer to these insights and case examples: 

  • A potential investor wanted help assessing the digital scorecard of an online label company in order to evaluate the performance of its website and digital marketing programs as well as identify key gaps. Using L.E.K.’s digital scorecard as a holistic evaluation framework, we compared the target’s user engagement performance against competitors, outlined specific recommendations to improve metrics like organic search, and prioritized development opportunities. We conducted user experience assessment covering the entire digital customer journey, from the home page to the checkout experience, and highlighted best-in-class examples and wishlist functionalities. We also evaluated the site’s technical performance, including site speed, mobile accessibility, time to first contentful paint, and first input delay. We then delivered to the client a detailed measurable scorecard of the target’s digital performance relative to its competitive set along with prioritized recommendations and tactics for improvement.

  • A fitness industry client needed help developing a growth strategy that incorporated the impacts of COVID-19 on the industry in order to identify and inform potential long-term growth opportunities for its various business segments. L.E.K. leveraged secondary research, conducted three surveys — with consumers, personal trainers, and gym owners/managers — and interviewed key industry opinion leaders to assess the attractiveness of the client’s current and potential new markets. It delivered to the client a quantified assessment of each opportunity and a prioritized set of the most attractive options to pursue in order to drive long-term growth.

How can we help you with your Digital needs?

Actionable insights borne out of deep, in-market experience in the world’s major industries.