Private equity firms and investors are increasingly placing focus on management due diligence and the importance of understanding people, cultural fit and capability. Due diligence that harnesses open source intelligence (OSINT Due Diligence) unlocks more meaningful insights into teams and companies, informing business decisions and protecting the financial health and reputation of investors.
Private equity dealmaking is soaring to its highest level since the lead-up to the financial crisis, as companies chase investment opportunities for a record amount of $2.5tn. With so much at stake, it absolutely pays to know more in today’s digital era.
“Perceptions have been shifting slowly across the private equity investor world so that understanding management isn’t confined just to looking at top team personalities. Instead, managing risk and increasing value is seen to rest on harnessing all available data to inform business decisions, covering top executives, team effectiveness, organisational structures and processes, people capacity and capability in target/investee companies.”
Dr. Mike Hicks, Catalysis Advisory
People are the key to the success of any deal, with the long-term strategy and direction of the firm steered and shaped by management teams. Insights into the true behaviour, character and networks of those sitting at the helm of investee firms often sit in the public domain on the Internet.
For instance, in the case of the sexist CEO, we uncovered numerous behavioural red flags via open sources available for all to see. By flagging this to the private equity firm, the reputational risk was flagged before the deal, mitigating reputational risk and equipping our client with insights that would have otherwise been missed.
Private equity firms use our OSINT-powered due diligence to know who they’re dealing with, helping lower the risks. Protect and improve the reputation and financial health of your firm. Schedule a call with our team today to discuss OSINT due diligence, or build a no-obligation estimate using our pricing tool.