Future Proof Due Diligence: Discover hidden growth potential in less than 3 weeks
Sebastian Esser
11 March 2024
"Future Proof Due Diligence enables PE professionals to identify a company's hidden opportunities before the acquisition and to translate them into concrete plans for rapid value creation". (Sebastian Esser, Partner)
In just three weeks to an acquisition decision with growth potential
Imagine, as a PE professional, being able to look into the future of a company - to identify and quantify its hidden growth potential - in just three weeks, before the final acquisition decision has to be made. That's exactly what our B-M Future Proof Due Diligence (DD) enables. At a time when speed is as important as accuracy, our approach offers a solution that not only saves time, but also provides accurate insights into the future potential of acquisition targets. This is a critical advantage for PE professionals looking for more than a traditional status quo due diligence for their portfolio companies.
A forward-looking complement to traditional due diligence
From the outset, we leverage existing data structures, such as company and due diligence reports, and use them to not only identify clear growth opportunities in less than three weeks, but also to precisely quantify them and assess their feasibility. Our approach allows for the efficient translation of this potential into a step-by-step action plan that can be implemented immediately post-acquisition - without lengthy planning phases. This efficiency and speed not only means significant time savings during the dynamic deal-making phase, but also a strategic advantage that enables more informed and faster decisions.
Analysis, evaluation and recommendations: The B-M Future Proof DD
Our Future Proof Due Diligence approach consists of three efficient steps that deliver deep insights and clear recommendations for private equity professionals.
1. Assessment: We start with a detailed analysis and evaluation of the product, customer engagement, operations and infrastructure based on targeted core questions. Through reverse engineering, we examine the value proposition and structure of the business. We then conduct customer and market analysis and competitive benchmarking to develop a comprehensive profile of strengths, opportunities, weaknesses and risks.
2. Outlook: Based on the initial analyses, we develop concrete, actionable options. These include the creation of product development plans, a review of sales strategies and an initial assessment of the integration of technical systems. For each actionable option, we provide a detailed assessment and recommendation, carefully considering the effort required, feasibility and likely effectiveness of the actions.
3. Scenarios: In the final step, we develop a robust investment hypothesis, explore various alternatives and create a precise roadmap for the implementation phase, with the clear objective of moving quickly to the value creation phase. We weigh up the pros and cons of buying, partnering or developing in-house (buy, partner, build) and draw up an initial plan for the forthcoming implementation, including an investment strategy. At its core, it's about developing a plan that unlocks the full potential and can be implemented immediately to add value to the asset as effectively and quickly as possible.
Using our future-proof DD as a springboard
In a world where digital transformation is critical to long-term success, our Future Proof DD enables you to quickly and efficiently identify growth opportunities that can be realised step-by-step through a systematic action plan. For PE professionals looking to drive sustainable value, this is an opportunity to stay one step ahead and quickly identify and capture hidden growth opportunities. By combining time savings, accelerated value creation and increased probability of success, our Future Proof Due Diligence lays the foundation for an advanced investment strategy that is well-positioned in the dynamic world of digital transformation.
Schedule a 15-minute call with our PE expert and partner Sebastian Esser to explore your unique digital transformation opportunities and learn how you can maximise your success with our Future Proof Due Diligence.
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