It’s Time to Rethink Due Diligence

A recent Accenture study highlights what many leaders in the Private Equity community are already feeling: the tides are changing in the private equity diligence space, and legacy approaches to diligence are no longer sufficient. 

Specifically, they found that:

• 75% of PE leaders surveyed agree that PE investments have grown more complex over the past five years, and as a result,
• 83% say their current due diligence approach is suboptimal and holistic diligence is more crucial than ever

Beyond this, their research finds that the top three diligence challenges for PE leaders are:

• Lack of good information on customer relationships
• Post-deal surprises in portfolio companies
• Insights that don’t translate into value creation

Are these familiar challenges you’re facing? 

If so, it may be time to consider how customer diligence can help you de-risk deals and drive post-deal value. 

Here’s a 1-minute video explaining how: 

The benefits of customer diligence are clear, it: 

• De-risks your deal: from understanding churn risk to key accounts to identifying customer pain points that never appear in rose-colored CIMs - you get the real story when you dig into customer insights 
• Provides post-close insights: analysis that comes complete with a customer-centric blueprint for future growth 
• Gets to the heart of customer truths: when diligence is introduced as a customer satisfaction study, customers respond in good faith, giving you real, unfiltered insight into your target and the competition.

New to this concept or already thinking about integrating customer diligence on your next deal? Schedule a quick, free call with us to see what’s possible.

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