This is the cornerstone of any PE deal. Unlike standard audits, PE financial diligence focuses on the "run-rate" of the business to ensure the price paid is fair.
2. Operational Due Diligence (ODD): Testing the Value Thesis Private Equity Company Due Diligence
In the world of Private Equity (PE), due diligence is the high-stakes period where a potential deal is either validated or dismantled. It is a rigorous, multi-disciplinary investigation that typically occurs after a Letter of Intent (LOI) is signed, lasting anywhere from . For PE firms, this isn’t just a "checkbox" exercise—it's the foundation for your entire post-close value creation plan. 1. Financial Due Diligence: The Quality of Earnings (QoE) This is the cornerstone of any PE deal
The Private Equity Playbook: Mastering Company Due Diligence Private Equity Company Due Diligence