“For over 50 years, SAP has been the most trusted enterprise application, when adopted by enterprise it ensures transparency and brings lot of confidence into the investor” Managing Director and Member of Board, India, NTT DATA Business Solutions Pvt. Ltd. India Krunal Patel told a room full of venture capitalists (VCs) and private equity (PE) investors in Mumbai. The maturity of a company’s enterprise resource planning (ERP) systems is already shaping how confident buyers feel about its numbers, Patel clarified, and, by extension, what they are willing to pay.
A decade ago, environmental, social and governance (ESG) factors were still at the margins and not central to how investors assessed term sheets; today, they are more central to deal valuations. Miloni Bhatt of The Economic Times asked what the next such variable would be: what would investors start formally pricing into deals and even walk away from, despite impressive top-line numbers? “For me, I think it is readiness,” Bhatt said. “How ready is a business underneath? How good is the data? How real is the growth? What about the numbers? Are they in order? And what is the intent of the founder?”
