Why NetSuite for Private Equity Portfolio Companies

by | Sep 10, 2020 | Private Equity | 0 comments

Since its inception, ScaleNorth Advisors knew NetSuite’s platform was an ideal match to support Private Equity (PE) firms and their portfolio companies. 

As finance and operational executives, we’ve grown companies, increased value, and executed transactions in numerous industries. NetSuite’s platform played a big role in facilitating the “growth to exit” life cycle and provided scale along the way.

With our current partnerships with PE firms and successful implementations for their portfolio clients, ScaleNorth has now formalize a service offering called NetSuite for Private Equity to address the unique needs of this market. 

Why the Fit Between NetSuite and Private Equity?

There are two situations where PE companies look to NetSuite’s Enterprise Resource Planning (ERP) platform. The first is as a buy-out, carve-out, divestiture or similar transaction. Whether investors are buying or selling a company or division, one of the entities will need a new financial ERP system; and that needs to be operational in a tight window.  This necessity opens opportunity for investors and operators to upgrade to the latest technology and best practices for managing the business. After all, expectations are that companies will grow and evolve into world-class organizations.  

Driver No. 2: On-going life cycle of growth in the portfolio.  In the early stages, embedded systems are usually not scalable, they are outdated and lacking the functionality to optimize operations and board-level reporting needed for monitoring. 

Enter NetSuite

NetSuite is ideally positioned in these situations.  First, it’s a cloud-based solution that eliminates the need for expensive IT infrastructure and the staff to manage on-premise systems.  And in a post-COVID-19 world, flexibility to stand-up a system with remote staff can be accomplished. 

A Cloud-based financial ERP also provides oversight benefits for private equity investors. Today’s sophisticated investors demand operational compliance, reporting, and real-time monitoring of the business. And there are regulatory requirements that also need to be considered for additional funding, a follow on  transaction with due diligence or potential IPO, and public accounting requirements.

private equity firms that use netsuite

More and more, Private Equity firms are standardizing financial solutions with NetSuite to gain scale with other portfolio companies.  In many cases, the PE’s portfolio is in the same industry meaning KPIs, dashboards, technology are the same and can be leveraged for optimization.  

Private Equity is placed in high-growth companies expecting revenue and margin growth.  With NetSuite as the foundation, the scale can take place without concerns for a future upgrade.  

Benefits of Netsuite for Private Equity

Not only is NetSuite the leading ERP but it is also one of the most widely used cloud-based ERP platforms in the world. Trusted by over 21,000 organizations in 160 countries, NetSuite has proved to be an invaluable resource that complements today’s dynamic marketplace. What are some additional reasons and benefits of NetSuite for Private Equity?

PE NetSuite Customers See Greater ROI

why to use netsuite for private equity firms

1.  NetSuite Supports Diverse Vertical Industries

Regardless of which sector your Private Equity firm finds itself, NetSuite has a solution for you. Support and service exist for dozens of industries. What’s more, ScaleNorth Advisors take great pride in configuring systems with best practices for operational excellence. 

2.  NetSuite Provides Global Expertise and Experience

For over two decades, NetSuite has worked with some of the top Private Equity firms in the world.  And as a strategic NetSuite partner, ScaleNorth Advisors has helped countless Private Equity firms through different ventures such as divestitures, buyouts, and mergers. Draw on the expertise and experience of both entities for the best outcomes. 

3.  NetSuite Boasts Unmatched Accounting and Financial Practices

The accounting team of PE portfolio companies enjoys seamless and streamlined accounting and financial practices thanks to NetSuite. The all-in-one Cloud-based platform boasts leading technologies that have helped solidify its ranking as the preferred ERP on the market. NetSuite’s unmatched prowess makes it a force to reckon with. And if you’re a Private Equity portfolio company, this investment is definitely worthy of consideration.

4.  The NetSuite System Can Be Scaled According to Need

Portfolio companies don’t have to worry about needing to find another system to handle their growing needs. NetSuite is designed to grow with you. Regardless of how big your corporation gets, NetSuite can be scaled to match. Upgrading or adding additional functionality, ScaleNorth Advisors can customize NetSuite to accommodate your operational requirements.

5. NetSuite Is A Low Maintenance Platform

IT infrastructure can be extremely expensive to set up and maintain. Fortunately, thanks to NetSuite’s cloud platform, there is no costly IT infrastructure. Relying on cloud-support, you are assured of safe and secure networks,  data storage, and little to no downtime. With NetSuite, you can channel resources that would otherwise have gone into IT maintenance into growing your business. 

Work With A Trusted NetSuite Partner

When it comes to selecting an ERP platform for a PE-backed company, there is one leader. NetSuite for Private Equity is the growing standard for PE funded companies. NetSuite is the obvious choice because of its robust global functionality, scalability, and low-maintenance nature. With years of experience assisting businesses to manage their operations, ScaleNorth is ready to help you make the transition. Contact us to discuss NetSuite solutions for PE-backed portfolio companies today.

Speak with one of our Netsuite Experts today.

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