Why do private equity investors use outside due diligence professionals?
Greater Depth expert in fact-finding, able to work non-stop, experience transfer
Clear Objectivity cold indifference
Strengthened Negotiating Position armed with an impressive body of factual knowledge
Improved Business Strategies identification of not only weaknesses, but solutions as well
What are the key questions answered by or commercial due diligence services?
Assess sales operations, channel structure, customer requirements
Test volume, growth, price, mix, and margin assumptions against market realities
Confirm the achievability and sensitivity of the business plan
Identify the value drivers of the acquisition and confirm synergy assumptions
Highlight risks and opportunities
Provide input to the implementation plan
Given recommendations on long-term strategy
Judge management ability against the industry
What type of clients do we server?
Private equity funds
Venture capital funds
Corporations
o Large Enterprises
o Small and Medium Enterprises
o Start Ups and New Ventures