How BVP Dissects Due Diligence for Private Equity Clients
What we don’t do is rely on a standard due diligence checklist that may lead to gaps in analysis. BVP instead views each engagement as unique—and as part of a broader strategy dialogue that begins with a clear understanding of the target’s current situation and where it wants to go.
Buy-side due diligence can be defined as an iterative process of raising and addressing financial, operational, cultural, and other critical questions. BVP’s due diligence consulting draws out answers based on our experience and expertise, our credibility as a neutral observer in the marketplace, and our deep analytical capabilities.
Our corporate and private equity due diligence processes differ somewhat, and the focus of each engagement depends on the target and acquirer. The basic approach, however, is similar. A typical analysis includes big-picture and detailed analysis of key areas, including:
- Market dynamics
- Sources of competitive advantage
- Potential for optimization of internal operations
- BVP’s view on the achievability of the business plan and value creation potential
From marketing and sales to operations, HR and technology and IT, we drill down into vital areas of business that are necessary to assess value creation potential. Once our due diligence work is done, we document our findings in a SWOT analysis format for easy reference use by all parties. Our realistic, neutral assessment of your target and the deal enables our clients to make considered, fact-based decision about moving ahead. If you do, the findings serves as the basis for your final offer. If you don’t, you can walk away without regrets—knowing you’re acting on intelligence and analytics capabilities that only BVP can deliver.