How Private Equity Firms Streamline Operations with Business Central

Why Private Equity Firms Need Modern ERP Solutions

Private equity firms manage complex financial ecosystems involving multiple operating companies, diverse business models, varying levels of financial maturity, and a wide range of reporting requirements. Traditional tools like spreadsheets or small business accounting systems were never designed to handle multi entity consolidation, performance analytics, or fund level reporting.

As firms scale their portfolios, the volume of operational data increases exponentially. Month end closes become longer, reporting becomes more error prone, and visibility diminishes. Modern ERP platforms like Business Central solve these challenges by delivering a single, unified environment where data, workflows, and reporting operate seamlessly across the investment ecosystem.

Key challenges private equity firms face with traditional systems

• Fragmented data across portfolio companies
  Data spread across different systems creates inconsistencies and slows down analysis. Fragmentation prevents leadership from identifying trends or making timely decisions.
• Slow and manual reporting cycles
  Investment teams spend days reconciling spreadsheets rather than analyzing results and identifying improvement opportunities.
• Limited transparency across investment performance
  Real time visibility into KPIs, margins, cash flow, and operational metrics is often missing, making it difficult to track value creation.
• Complex multi entity consolidation
  Combining results across entities is time consuming and highly manual, especially when charts of accounts or systems vary.
• Minimal automation leading to higher costs
  Without automated workflows, portfolio companies rely heavily on growing finance teams, increasing operating costs and reducing EBITDA.

To remain competitive and meet investor expectations, firms require an ERP for private equity portfolio management that provides transparency, speed, automation, and scalability.

What Makes Microsoft Dynamics 365 Business Central Ideal for Private Equity

Microsoft Dynamics 365 Business Central is designed to modernize financial operations, centralize data, and scale across multiple entities. It serves as a unified system that aligns all portfolio companies under a common financial framework, improving consistency and enabling faster decision making.

Business Central gives private equity firms a centralized platform to standardize processes, streamline operations, and integrate newly acquired companies quickly. It delivers the tools required for financial discipline, operational governance, and real time portfolio analysis.

Why Business Central fits private equity needs

• Cloud based onboarding for new acquisitions
  Portfolio companies can be integrated quickly without heavy implementation cycles.
• Unified financial management across entities
  A consistent financial environment supports apples to apples comparison across complex groups.
• Centralized reporting for investment portfolios
  Dashboards provide clear insight into portfolio wide performance, trends, and variances.
• Configurable workflows for governance
  Built in approval processes ensure financial discipline and operational control.
• Seamless integration with fund accounting and Power BI
  Creates a single ecosystem for both fund level and entity level reporting.

Volt Technologies, a certified Dynamics 365 Business Central Partner, specializes in deploying Business Central for private equity firms and their portfolio companies. Volt ensures a smooth transition to standardized financial structures, automated workflows, and enhanced reporting capabilities.

Key Capabilities of Business Central for Portfolio Operations

For private equity firms seeking operational improvement, Business Central provides essential tools for managing multi entity environments, automating financial processes, and delivering unified reporting across the portfolio. These capabilities are particularly valuable during scaling, integration, and value creation phases.

Multi Entity and Multi Fund Management

Private equity firms often oversee dozens of portfolio companies, each with unique accounting structures, reporting frameworks, and operational needs. Business Central solves this by offering a centralized, multi entity system that ensures consistency across all companies.

Key capabilities

• Centralized management of all portfolio entities
  Streamlines operations and reduces redundant processes, enabling consistent performance management.
• Automated intercompany transactions
  Reduces reconciliation time and improves accuracy across all financial interactions.
• Real time financial consolidation
  Provides immediate visibility into group wide performance without manual intervention.
• Standardized chart of accounts
  Ensures all companies follow a unified reporting structure, improving transparency.
• Dimensional reporting for deeper analysis
  Allows performance insights at entity, business unit, fund, or investment level.

This foundation enables efficient consolidation, cleaner financials, and better strategic oversight across the entire portfolio.

Automation Across Portfolio Operations

Automation is central to the private equity value creation model. Business Central automates time consuming tasks that traditionally slow down finance teams, enabling companies to operate leaner and faster.

Operational automation includes

• Automated AP and AR workflows
  Accelerates cash cycle processes and reduces manual data entry.
• Intelligent bank reconciliation
  Matches transactions automatically for faster and more accurate month end closing.
• Purchase order and spend approvals
  Ensures tight control over expenditure across all entities.
• Automated invoice capture
  Eliminates the need for manual invoice entry, improving accuracy.
• Recurring journal automation
  Ensures consistent and accurate monthly entries for fees, allocations, and accruals.

Automation reduces operational risk, improves compliance, and frees up finance teams to focus on higher value tasks.

Performance and Operational Reporting

Business Central gives private equity firms a full suite of reporting tools, enabling performance tracking at both company and portfolio level.

PE focused reporting capabilities

• Dashboards for investment performance
  Real time indicators help investment teams monitor operational and financial performance across all companies.
• KPI tracking across EBITDA and efficiency indicators
  Supports benchmarking and performance analysis aligned with value creation strategies.
• Power BI visualizations
  Delivers powerful insights through interactive charts and advanced analytics.
• Flexible reporting by entity or segment
  Caters to the reporting needs of investors, management teams, and operating partners.
• Transaction level drill down
  Improves transparency and supports deep operational analysis.

This level of insight equips PE firms to drive value creation initiatives more effectively.

Fund Accounting and ERP Integration

Private equity firms depend on both fund accounting systems and portfolio company ERPs. Business Central integrates seamlessly with fund accounting tools, creating a unified ecosystem for comprehensive reporting.

Integration advantages

• API based connections with fund accounting tools
  Ensures seamless data flow between systems, reducing manual entry.
• Unified GL visibility
  Provides a complete financial picture from fund level down to individual portfolio companies.
• Enhanced compliance
  Centralized records improve audit readiness and governance.
• Consolidated metrics across both systems
  Supports investment committee reporting and portfolio analysis.
• Secure data flows
  Protects sensitive financial information throughout the ecosystem.

Integration strengthens transparency across the entire investment lifecycle.

How Private Equity Firms Use Business Central Across the Investment Lifecycle

Private equity firms need systems that support the full investment lifecycle, from early evaluation to value creation and eventual exit. Business Central provides the structure and insights necessary to support every phase of the journey.

Pre Acquisition: Streamlined Due Diligence and Evaluation

During due diligence, Business Central helps investment teams quickly assess financial integrity and business performance.

• Fast onboarding of financial data
  Enables quick assessment and comparison of potential targets.
• Validation tools to detect issues
  Identifies discrepancies and operational red flags early.
• Standardized financial comparison models
  Supports consistent evaluation across multiple acquisition candidates.
• Visibility into cash flow and margin health
  Helps confirm profitability and scalability potential.

Post Acquisition: Standardizing Operations Across Portfolio Companies

Once a company is acquired, Business Central helps rapidly align financial processes with portfolio level standards.

• Unified reporting and aligned charts of accounts
  Drives financial consistency across all entities.
• Standardized workflows for governance
  Reduces operational risk and enhances control.
• Centralized master data management
  Improves data quality and eliminates duplication.
• Automated tasks reduce manual effort
  Gives finance teams more capacity for strategic work.

Value Creation: Operational Excellence and Performance Tracking

Business Central supports value creation initiatives by offering real time data and advanced analytics.

• Dashboards aligned with value creation plans
  Track operational improvements and EBITDA growth.
• Automation reduces operational costs
  Improves efficiency and contributes to margin expansion.
• Improved cash flow visibility
  Strengthens working capital management.
• Scenario planning tools
  Helps investment teams model growth opportunities and risks.
• More accurate budgeting and forecasting
  Supports strategic planning and predictive insights.

Exit Stage: Consistent Reporting and Transaction Readiness

Business Central helps prepare companies for a smooth exit by ensuring clean financials and strong governance.

• Accurate consolidated reports for valuation
  Increases buyer confidence and credibility.
• Strong audit trails
  Supports compliance reviews and due diligence.
• Standardized reporting packages
  Presents the company professionally for potential buyers.
• Quick VDR preparation
  Accelerates the timeline for sharing financial information.
• Cleaner and faster transaction process
  Improves efficiency and reduces closing risk.

Real World Benefits for Private Equity Teams

Business Central has a measurable impact on the speed, accuracy, and effectiveness of portfolio operations. Research from PwC, Gartner, Deloitte, Protiviti, and Harvard Business Review supports the transformative power of cloud ERP across scalability, reporting accuracy, and operational efficiency.

Industry backed benefits include

• Faster month end close cycles
  Modern ERP platforms reduce close times by twenty five to forty percent.
• Improved reporting accuracy
  Cloud ERP systems enhance reporting precision by thirty percent.
• Reduced manual workload
  Automation cuts manual work for finance teams by up to fifty percent.
• Stronger audit readiness
  Cloud ERP reduces audit preparation time by forty percent.
• More informed decision making
  Data driven organizations experience higher EBITDA improvement.

Why Private Equity Firms Partner with Volt Technologies

Volt Technologies combines technical expertise with deep understanding of private equity operations. As a certified Microsoft Dynamics 365 Business Central Partner, Volt helps firms deploy Business Central successfully across multi entity environments.

Volt offers:

• Portfolio wide ERP rollout and configuration
  • Multi entity and multi currency setup
  • Fund accounting integration
  • Process automation design
  • Power BI dashboards and advanced analytics
  • Ongoing support for value creation and growth

Volt Technologies ensures every portfolio company is equipped with a scalable financial platform aligned with your investment strategy.

Conclusion: Business Central as a Catalyst for Portfolio Value Creation

Business Central enables private equity firms to build scalable, efficient, and transparent financial operations across their portfolios. With capabilities such as multi entity consolidation, workflow automation, real time reporting, and fund accounting integration, Business Central empowers firms to streamline operations, improve compliance, and accelerate value creation.

Volt Technologies helps private equity firms implement Business Central in a way that maximizes efficiency, supports rapid growth, and prepares companies for successful exits.

Contact Volt Technologies to learn how Business Central can transform your portfolio operations and accelerate value creation.

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