To satisfy investor expectations, PE-backed companies must deliver value quickly. This requires creating operational efficiencies, driving EBITDA growth, and ensuring the smooth integration of newly acquired companies during M&A activities—all critical to the overall success of the portfolio.
When automating finance, particularly AP, PE-backed companies generally focus on five key objectives:
- Headcount Optimization: Streamlining operations by automating manual tasks and repurposing workforce for higher-value, strategic work.
- Rapid Implementation: Ensuring fast, seamless integration of new systems with minimal disruption to ongoing operations.
- EBITDA Enhancement: Boosting profitability through significant cost savings, improved efficiencies, and reduced financial risks.
- M&A Synergy Realization: Facilitating the smooth integration of acquired companies by efficiently managing multiple ERPs and data sources.
- End-to-End Visibility: Leveraging real-time data to make informed decisions, optimize cash flow, and mitigate risk.
End-to-end, AI-First solutions like OpenEnvoy are required for PE-backed companies to realize the synergies expected from M&A activity. These companies can rapidly reduce costs, streamline operations, and achieve the scalability needed to support aggressive growth targets.
The limitations of traditional AP automation
Traditional AP automation systems often fall short in meeting the high demands of PE-backed companies, particularly during periods of rapid growth and M&A. These systems are typically slow to deliver value, requiring long implementation periods and extensive customization. They offer incomplete automation, leaving gaps that still require manual work. Without AI, they struggle with efficiency, making it difficult to reduce headcount, minimize errors, or scale operations effectively.
Moreover, traditional systems have weak fraud detection capabilities, leaving companies exposed to risks without the real-time tools needed to catch and prevent sophisticated fraud. Their reliance on brittle template structures or other legacy approaches limits scalability, leading to operational inefficiencies and higher costs. Additionally, these systems often require significant manual oversight, which contradicts the very purpose of automation—reducing human intervention, not managing the technology that’s supposed to simplify processes.
Investing in AI-first AP technology secures M&A success
OpenEnvoy’s AI-First AP automation solution is designed to address the challenges faced by PE-backed companies, especially those involved in M&A.
- Headcount Optimization: OpenEnvoy automates AP from end to end. It eliminates manual tasks and frees teams to focus on strategic work.
- Rapid Implementation: Integration is under 60 days, even across multiple ERPs. Companies see results quickly without disrupting operations.
- EBITDA Enhancement: Automation drives cost savings and reduces errors. This directly improves margins and lowers financial risk.
- M&A Synergy Realization: OpenEnvoy handles multiple systems and data sources with ease. Acquisitions are integrated faster, unlocking synergies sooner.
- End-to-End Visibility: Real-time data and AI insights give complete control over AP. Teams make better decisions, manage cash flow, and reduce risk.
Real-world success: Raney’s
Raney’s, backed by Incline Equity Partners, is a leading e-commerce platform in the trucking industry. As the company grew, both organically and through acquisitions, their manual AP processes became a major obstacle. Errors, delays, and inefficiencies made it hard to scale. Integrating newly acquired companies only added to the complexity.
As a PE-backed business, Raney’s needed to control costs, improve efficiency, and onboard acquisitions without disrupting AP. OpenEnvoy delivered. With AI-first automation, they eliminated manual tasks, reduced headcount, and redeployed staff to higher-value work.
OpenEnvoy integrated easily with existing systems. There was no disruption. Raney’s quickly achieved full AP automation, reduced costs, and scaled smoothly as they brought in new businesses. Today, they operate with greater speed, flexibility, and control.
Real-World success: Bliss Point
Bliss Point Media (now Tinuiti), backed by New Mountain Capital, was scaling fast. Their AP team couldn’t keep up with the growing volume and complexity of invoices. Manual tasks caused delays, errors, and higher costs.
OpenEnvoy changed that. The platform automated 90% of AP work. Processing became faster and more accurate. The team shifted focus to strategic work.
Bliss Point Media saw major gains. They cut costs, improved fraud detection, and boosted EBITDA. Within six months, they achieved a 10x ROI and 30x productivity.
For PE firms, this shows how AI-first automation supports scale, M&A integration, and profitability.
Conclusion
OpenEnvoy’s success stories with Raney’s and Bliss Point Media (now Tinuiti) illustrate OpenEnvoy’s ability to solve the unique challenges faced by PE-backed companies. By delivering speed, accuracy, and scalability, OpenEnvoy is enabling companies to achieve their strategic goals and realize the full potential of their investments.
