Pre-deal diligence drives PE profits

In today's challenging private equity (PE) climate, a key to unlocking value lies in a strategic shift from cost-cutting to performance improvement initiatives. PE firms should focus early on value creation strategies by conducting in-depth pre-deal diligence and embrace the role of operating partners in the process. Identify value drivers early to prioritize immediate action during the post-sign phase, including crafting an overall roadmap with specific initiatives and detailed timelines.

Value capture strategies in the pre-deal phase include:

• Size-of-the-prize assessment: With key data inputs, quickly assess potential areas of value creation that can be achieved by seizing growth and cost opportunities
• Refining the size-of-the-prize assessment: Increase the accuracy of the assessment with management discussions

Download our paper to learn more about how PE firms can maximize value creation opportunities with pre-deal diligence.