Private equity looks to the CIO as value multiplier

In addition, many investors are increasingly focused on the value of the data that their portfolio companies hold for planning, forecasting, and making strategic business decisions, Corrigan says. “The voice of IT is very helpful when it comes to moving your business forward,” he adds. “How can you leverage your data to make better business decisions?”

IT tools can also play a big role in projecting the one-time costs of an equity purchase and determining the ongoing costs of operation, he adds. CIOs can help investors avoid major pitfalls, such as legacy technology debt, when they consider funding a new company, he says.

Zibtek’s Merrill agrees, saying that some investment groups are increasingly using CIOs to help with research before financing a new firm. “They’re being involved more even upfront with due diligence, so that investors are picking the right deals,” he says. “They could see things that traditional private equity folks who are basically financial analysts would not see.”