TL;DR: IT is an investment, not an expense.

IT transformation increases enterprise value. See how Fluid MSP helped a private equity backed company increase business value through an ERP implementation.

Increasing Enterprise Value through Strategic IT Professionalization with Fluid MSP

Background

A private equity backed company sought to adopt an Enterprise Resource Planning (ERP) system in order to professionalize the business and increase the enterprise value at sale.

Challenge

The company needed to distribute and maintain a robust ERP system capable of scaling effectively to streamline business operations. Specific challenges included:

  • Inefficient manual processes slowing down growth
  • Lack of centralized data management
  • Difficulty in integrating new acquisitions

Strategic Solutions Considered

1. Hire a CTO: Potentially costly and time-consuming to find the right fit.

2. Work with break/fix IT for a project-based solution: Lacks long-term support and scalability.

3. Partner with an MSP for ERP deployment: Offers expertise, scalability, and ongoing support.

Chosen Solution

Fluid MSP was selected to spearhead the IT transformation, implementing a centralized ERP system to refine decision-making and operational efficiency.

Key actions included:

  • Deploying mobile devices and workstations essential for rapid scalability
  • Providing comprehensive IT support and device management
  • Offering expertise in ERP implementation and customization

Results

The partnership with Fluid MSP drove significant improvements and increased enterprise value.

Enhanced Efficiency: Streamlined processes cut down onboarding times and eliminated many operational pitfalls.

Scalability: Private equity portfolio companies need reliable systems designed for speed. Our approach went beyond mere software deployment—it set the stage for exponential growth, facilitating rapid scalability, smooth integration of new acquisitions, and workforce expansion without IT constraints.

Increased Enterprise Value:

  • The Aspire ERP implementation yielded a 2x ROI by saving 4% on operations from a modest 2% revenue expenditure.
  • Strategic IT enhancements led by Fluid MSP directly contributed to an increased business value.
  • Each dollar saved should produce an additional estimated $10+ in enterprise value at sale.

Conclusion

IT is an investment, not an expense. Fluid MSP’s strategic IT transformation turned a legacy-style business into a scalable powerhouse, ready for rapid growth within the private equity portfolio. This case demonstrates our unique ability to significantly enhance operational efficiency and increase enterprise value—aligning perfectly with the investment objectives of PE partners to maximize returns.

Discover how Fluid MSP can maximize your investment returns through tailored IT solutions. Book a call today to learn how we can help increase your enterprise value and drive your business forward.

Published on
August 16, 2024
Featured Image Credit
FAQs
This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

You Might Also Like