Private Company Due Diligence

Curious if anybody has seen any material (whether online, print, case studies, etc.) that details how a PE shop would analyze/diligence a target. Looking for something more granular than pure transaction/valuation modeling, but more along the lines of revenue/expense bridges, customer/cohort analyses, etc. where you are trying to understand what is happening in the target's business and where the risks and opportunities are from a numbers perspective.

For example, Management says revenue growth is coming from expanding within their current base, however, after modeling their historical customer data you illustrate that it is actually a couple of big wins that get them to their numbers and their current base is only experiencing inflation-level growth. This leads you to consider restructuring their pricing or sales strategy post close.

This was a long winded way of asking if there are resources that help you dig into a company's numbers and business aside from just looking at their audits or monthly financials.

Thanks!
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Aug 10, 2018
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