With the value of private equity-related deals in the U.S. estimated at nearly $700 billion for 2022, investors continue to search for new acquisitions. The primary goal of acquiring or investing in a company is to achieve a positive return on investment (ROI) and provide a return to any partners in a short timeframe.
However, the bigger the financial reward, the bigger the risk. Protect your name, integrity, and money by knowing all you need to know before investing in or buying a target company. At CaptureINTEL, we conduct comprehensive private equity due diligence for our clients to set them up for future success in the long term.
Why Private Equity Due Diligence is Crucial for Your Business Transaction
By definition, private equity due diligence involves the collection of information such as the history, assets, and financial performance of a potential investment to prepare an appropriate purchase price and business plan.
Completing the due diligence process helps private equity investors understand the overall nature of a deal and the potential risks involved. Private equity deals differ from traditional M&A transactions. These acquiring enterprises are looking for companies to generate profits/reduce costs together, expand geographic reach, and enhance their business portfolio, compared to solely focusing on profitability.
It is best practice to complete a due diligence investigation before a deal closes. This will give the buyer confidence in what they are getting. Private equity firms typically invest in well-established companies that they think will achieve an optimal level of financial performance.
These potential investments commonly have proven business models, experienced management teams, solid customer relationships, and more financial information than early-stage companies. As a result, the due diligence process can be time-consuming and more complex. CaptureINTEL is here to help. Significantly improve your chances of acquisition success by being able to make informed investment decisions based on valuable intel.
It is crucial to conduct private equity due diligence for several reasons. This service can uncover the target company’s:
- Litigation, Liens, and Judgments
- Adverse Media
- Reputation
- Regulatory and Licensing Compliance
- Sanctions, Watchlists, PEP, OFAC, KYC
- Real Estate
With decades of industry experience, CaptureINTEL empowers clients with professional private equity due diligence services. After understanding your goals, a dedicated representative is immediately assigned to your account to provide prompt responses. They will keep you apprised throughout the investigation of any red flags. Once complete, we will give you a detailed report that is easy to read and understand within your timeline, guaranteed. Count on us to help you minimize risk and maximize gain with your upcoming private equity deal.