The M&A / Due Diligence Perspective - Digital Transformations
- Schimpf Group
- Dec 5, 2025
- 1 min read
"Digital Transformation" is usually a euphemism for "burning cash on consultants." Yet, when we conduct our Value Discovery Sprints, we constantly find massive, untapped value in the most unglamorous places.
The secret to real value creation isn't finding a "new" business model. It's finding the friction in the old one.
The Invisible Levers
We recently reviewed a logistics operation that was struggling with margins. The "Theater" solution would have been to rebrand or launch a new app. The "Hard-Nosed" solution was looking at the dispatch room.
We found that dispatchers were spending 40% of their time manually re-routing drivers based on traffic.
The Fix: A simple API integration with existing mapping software.
The Cost: Negligible implementation fees.
The Result: Fuel costs down 15%. Driver idle time down 20%.
This wasn't a "Generative AI Revolution." It was just fixing a leak.
The "War Map" for Acquisitions
For search funds and family offices looking at acquisitions, this is your edge. Don't look for the company that claims to be "tech-enabled." Look for the company that is decidedly not. Look for the service business with strong recurring revenue, loyal customers, and a back office that runs on paper and Excel.
That friction is your upside. By applying a "Governance Backbone" and simple, rule-based automation, you can often double EBITDA without needing a single "moonshot" idea.
The Lesson: If your base case relies on AI to make the deal work, walk away. But if you have a solid business that works without tech, then tech becomes the "invisible lever" that turns a good company into a great one.
