ALL INSIGHTST4’s Dan Grainger Joins the Private Equity Data Guy Podcast
Published
What happens when PE firms hear directly from a target's customers? T4's Dan Grainger talks with Graeme Crawford about what customers reveal during the LOI window and how those findings change deals.
Planning a transaction?
Get a customer diligence perspective before the deal clock starts.
Customer Due Diligence Stories From Inside the LOI Window
"Customer perception is reality. I don't care what you believe within the four walls of your business."
T4's Dan Grainger joined Graeme Crawford, founder and CEO of Crawford McMillan, on the Private Equity Data Guy podcast. They discuss the customer findings that kill deals, and what customers tell you that management never will. Plus, Dan shares real-world stories from customer diligence, including one that saved a PE firm $25 million.
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About the episode
Dan leads T4's private equity practice, where he interviews the customers of acquisition targets during the LOI window. He explains how T4 fits a voice of customer study into a 30-day diligence timeline, how they de-risk deals and define value creation strategies, and tips for making CDD successful for all stakeholders.
In this episode, Dan walks through three deals where customer interviews changed the outcome:
- A packaging company's price came down $25 million after 14 of its top 15 accounts reported lower-priced foreign imports had hit the market.
- A flooring manufacturer's dealers traced their dissatisfaction to a failed SAP implementation. The PE firm chose to walk away.
- A visualization software company had an NPS of 72, but the ERP platform it was built on was developing a competing product. This existential threat ultimately killed the deal.
Dan also covers the most common issue he finds in lower middle market deals, and his favorite question to ask customers.
Meet with Dan to learn more about customer due diligence for private equity.
ALL INSIGHTS