What is SEO, digital marketing & website due diligence?
Digital due diligence covers many different areas, from SEO to digital security and compliance right through to the online performance of the company’s digital marketing strategy….Its website, social media presence, online advertising, email marketing, sales and leads funnels, amongst others.
This digital footprint is the focus of our diligence work. It’s an area that we specialise in covering an in-depth due diligence SEO audit, alongside detailed website and digital marketing audits. Marketing tactics can sound subjective, so our digital tools, testing procedures and advanced reporting add a numerical value to previously untested and costly activity.
With an increasing number of deals exceeding 10x EV/EBITDA (over 60% last year for the private equity industry in the US according to Pitchbook) it’s vital for a PE firm to utilise all potential levers of growth. Online sales and marketing optimisation, especially in mid-market deals, are often underutilised and offer significant opportunities going forward.
The value of a sound digital strategy is increasing with the growth in the online presence of most companies, indeed Bain sees this clearly “For diligence into a particular company, web scraping provides indicators of market share and growth momentum, such as web-traffic analysis”.
Further to this, savvy PE firms are starting to wake up to the potential alongside more traditional marketing efforts and directly apply it to their portfolio companies. According to Jim Howland, a Managing Director and Operating General Partner at Morgan Stanley Capital Partners “Increasingly our value creation plans focus on working to accelerate top-line growth by adopting a more sophisticated marketing strategy and making material investments in the function.”
The results of the due diligence audit services that we conduct identify opportunities for growth and highlight areas of friction that require fixing. Being armed with this powerful knowledge and implementing it on portfolio companies has led to significant online performance improvements for our clients.
The Correlation Between Digital Adoption & Performance
A recent report by Mckinsey highlighted the strong negative correlation that nondigital company cultures have on economic performance. It’s worth noting that along with an aversion to risk and restrictive mindsets, a lack of digital culture is an accurate indicator of suboptimal company performance. Rather than viewing these situations as being negative. Our approach targets the opportunities that are available once the diligence process has been conducted and lays out a clear strategic marketing plan to move forward.