Digital Transformation Consulting
Accenture
Full Credential Description
The case study highlights a private equity firm's focus on addressing the increasing complexity of pre-deal assessments, especially in evaluating portfolio companies' capabilities, processes, and technology infrastructure. One niche issue faced was the frequent discovery of unexpected gaps in operational and technological areas during due diligence, which 40% of survey respondents identified as a top challenge. To resolve this, the firm adopted an integrated, comprehensive due diligence process that expanded the scope beyond traditional financial and strategic analysis to include technology, leadership, sustainability, and operational factors. This detailed approach enabled the identification of previously overlooked vulnerabilities and opportunities, justifying higher bid prices and informing a robust value creation plan.
To enhance the efficiency and depth of their due diligence, the firm leveraged advanced analytics and emerging technologies such as generative AI. These tools automated up to 30% of due diligence tasks and augmented an additional 20%, significantly accelerating the process and enabling deeper insights without proportional increases in resource expenditure. Additionally, the firm recognized leadership capabilities, particularly the importance of CEOs with technological expertise, as a critical factor for value creation. Their analysis showed that portfolios led by CEOs with technology backgrounds achieved a 23.9% five-year revenue CAGR—1.4 times higher than those without such experience—demonstrating the tangible impact of evaluating leadership qualities during pre-deal analysis.
Overall, the tailored solution centered on a holistic, technology-enabled due diligence process combined with targeted leadership assessment. The result was a more precise understanding of potential risks and opportunities, enabling faster deal execution and stronger post-acquisition value creation, with quantifiable benefits including higher bid justifications and improved leadership impact on revenue growth.