Private Equity Company Due Diligence -

While financial diligence looks back, ODD looks forward. It assesses whether the company can actually scale and deliver the growth projected in the investment thesis.

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. Private Equity Company Due Diligence

Determining the "normal" level of capital required to run the business day-to-day to avoid post-close cash surprises. While financial diligence looks back, ODD looks forward

Analyzing customer concentration (e.g., top 10 customers), churn rates, and whether revenue is recurring or one-time. While financial diligence looks back

2. Operational Due Diligence (ODD): Testing the Value Thesis