Meeting PE Expectations in Accounts Payable

To thrive under PE ownership, where rapid transformation is the goal, companies need a powerful tool: Autonomous AP.

Private equity firms push their portfolio companies to rapidly achieve goals in profitability, efficiency, and scalability. To meet these demands, many PE-backed businesses are adopting AI-powered AP solutions. These Autonomous AP platforms optimize processes, cut costs, and deliver immediate impact, from streamlining operations and reducing headcount to boosting EBITDA.

The 7 0perational areas where Autonomous AP can drive success

To meet private equity expectations, focus on these 7 crucial operational areas where Autonomous AP can drive success. These key areas will help your company boost profitability, efficiency, and achieve rapid ROI, while ensuring long-term scalability.

Each section highlights key priorities for success under PE ownership, showing how Autonomous AP delivers measurable results, supported by real OpenEnvoy quotes to communicate value to the PE firm.

1. Increase EBITDA:

PE Expectation: Rapid cost reductions and profitability growth are critical. PE firms want to see AI-powered AP solutions directly impacting EBITDA within the first quarter.

What you can do:

• Evaluate current AP processes for inefficiencies.
• Implement AI-driven automation to eliminate overbillings and manual errors.
• Track and report monthly cost savings and profitability improvements.

Example Talking Point for Your PE Stakeholders: “We reduced AP costs within two quarters, leading to a 3% EBITDA boost.”

2. Headcount efficiency & scalability for growth:

PE Expectation: Companies must scale rapidly without increasing costs or headcount, leveraging automation to handle more transactions with the same or fewer employees.

What you can do:

• Automate manual tasks to support increased transaction volumes without adding staff.
• Regularly evaluate and adjust your systems to handle growth efficiently and reduce reliance on manual processes.
• Reallocate team members to strategic initiatives.

Example Talking Point for Your PE Stakeholders: “We doubled our transaction volume without adding headcount to our AP team.”

3. Fraud detection and prevention:

PE Expectation: Robust fraud detection to eliminate risks of overpayment or duplicate invoices.

What you can do:

• Set up AI tools to monitor transactions for fraud indicators in real-time.
• Create protocols to investigate flagged invoices quickly and efficiently.
• Regularly report fraud savings to leadership and stakeholders.

Example Talking Point for Your PE Stakeholders: “We eliminated fraudulent invoices totaling $500K annually, thanks to advanced AI fraud detection capabilities.”

4. Financial controls:

PE Expectation: Strong financial controls are essential for maintaining accuracy and integrity, reducing discrepancies, and improving compliance.

What you can do:

• Implement AI-enhanced financial controls to improve data accuracy.
• Set up automated workflows to reconcile discrepancies immediately.
• Report improvements in financial accuracy and reduced manual errors to leadership.

Example Talking Point for Your PE Stakeholders: “We reduced discrepancies by 95% after adopting AI-enhanced controls.”

5. Accelerate time to value:

PE Expectation: PE-backed companies must see rapid ROI, especially after M&A. Digital transformation initiatives must deliver value within months, not years.

What you can do:

• Set a clear timeline for full AP digitization and track implementation milestones.
• Ensure your automation solution integrates seamlessly with existing systems.
• Regularly review ROI metrics, focusing on time savings and financial improvements.

Example Talking Point for Your PE Stakeholders: “We digitized AP across 100% of suppliers in just two months, freeing up staff for proactive tasks.”

6. Vendor negotiation insights:

PE Expectation: AI-driven analytics are crucial for providing spend visibility that supports stronger vendor negotiations and cost reductions.

What you can do:

• Use AI tools to analyze AP data for trends in spending and vendor performance.
• Leverage detailed spend reports in vendor negotiations to secure better terms.
• Regularly update leadership on savings achieved through vendor negotiations.

Example Talking Point for Your PE Stakeholders: “We leveraged AI-powered insights to negotiate a 15% discount with a major supplier.”

7. Quick onboarding:

PE Expectation: Seamless and fast integration of new AP tools with minimal disruption to business operations is a must.

What you can do:

• Plan and execute a detailed onboarding schedule with clear goals.
• Engage with your AI provider to ensure smooth integration with existing systems.
• Monitor onboarding progress and make adjustments as needed to meet deadlines.

Example Talking Point for Your PE Stakeholders: “We were fully operational within 3 months, thanks to efficient AI integration.”

Don't just meet expectations, exceed them. Embrace Autonomous AP and realize the full potential of your PE-backed business. Click here to see success stories of PE-backed manufacturing companies using OpenEnvoy.