Need: Due Diligence

Top specialized diligence providers critically needed

Firm needs specialized providers across their diligence provider matrix to assess target

A PE firm investment team came to us with a critical need for a full set of industry specialized diligence providers that could assess their target in the commercial roofing space. Having recently received the deal under LOI, the firm was preparing a full diligence analysis on all aspects of the business. The team had a sense for the typical providers they used, but knowing the value of using specialized providers on a deal-by-deal basis, they wanted BluWave’s recommendation for providers that were the best in class for the specific industry and needs of the target. Specifically, the firm needed specialized market study, operational, and IT diligence providers. 

BluWave uses extensive knowledge and network to identify industry specific, PE-grade providers

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of the providers across all service functions that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted operational, IT, and market study providers from our invitation-only Intelligent Network that fit their exacting needs. 

Firm engages select providers to confidently assess target 

Within less than 24 hours of the initial scoping call, the PE firm was introduced to select, exact-fit, PE-grade IT, market study, and operational diligence groups with extensive experience in commercial roofing. The client selected their ideal choice for each service and the PE firm was able to confidently assess the target company during their period of LOI. So pleased with BluWave’s quick insight and introductions to providers that were best-fit for each diligence need, the firm made it standard operating procedure to bring all of their diligence needs to BluWave moving forward. They knew this would ensure they would always connect with the best, PE-grade, specialized providers for any given need. 

In the Know: Due Diligence for Better Deals

October 6, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients in our “In the Know” series. In our most recent installment, Consulting Manager, Scott Bellinger, covers due diligence for better deals – sharing the top due diligence resources we equip clients with and why firms come to us with their needs.

Learn more about how we equip PE firms with the exact-fit commercial due diligence,  IT diligence, and operational diligence providers they need exactly when they need them.

Interested in learning more about how we can support your diligence needs? Learn more in our Due Diligence hub.

Video transcript:

In the past few weeks, The BluWave Activity Index has shown that due diligence activity is picking up as we quickly approach Q4. Heightened deal activity means that it’s more vital than ever to ensure you’re utilizing diligence providers that can equip you with the unique insights you need to inform a wise investment decision. We quickly connect PE firms to specialized diligence providers that they need so that they don’t have to waste time vetting providers by availability, budget, and industry expertise. Here are some of the top diligence resources we are connecting our PE firm clients with.

First, commercial due diligence. Commercial diligence has become standard operating procedure for all of private equity, not just the large cap firms. With deal stakes high, investing in commercial due diligence upfront is vital. To maximize the output of commercial due diligence efforts. We connect firms with specialized providers by industry who already know the market. This allows them to dig in deeper, faster, and equip them with market and company insights generalist providers are not capable of.

Next is IT due diligence. Nowadays, every business has cybersecurity concerns. An unknown, as well as unaddressed cyber risk, can wreak havoc on an investment down the road. Proactive PE firms of all sizes are choosing to invest in IT due diligence efforts upfront so that they can preemptively address problems and challenges that could occur in the future. As the technology landscape constantly changes, so do the diligence providers in the space. In order to combat this for our clients, BluWave continuously maps the market in order to always be on the forefront of knowing what providers are best suited for what PE firms need at any given time.

And finally, operational diligence. Gone are the days where small process improvements in a portfolio company led to high returns. Now it is all about transformation. Ops due diligence providers go into a target company during the LOI phase to review their processes and begin identifying opportunities for growth so that you can hit the ground running on a well-developed value creation plan immediately post-close. We connect our clients with industry-specific providers they need so that they can gain the nuanced insight that can transform a company only industry veterans would glean. At BluWave, we are here to connect you with exact-fit, PE-grade diligence resources you need at the exact time you need them. If we can provide you with the resources you need to bolster your due diligence process, or if we can support any other third-party needs that you may have. Contact us at info@BluWave.net.

Technology diligence critical for target company

Partner needs technology diligence for software target 

A PE firm partner came to us with a critical need for a technology diligence group that could assess a target software company. Hoping to close on the target company soon, the partner needed to evaluate the quality of the code, the transportability of the software, and the scalability of the software. They urgently needed a PE-grade technology diligence provider who could assess the company’s current software and advise a best practice plan for how the firm should move forward with the target.

BluWave has select providers that match exacting needs 

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade technology diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted providers from our invitation-only Intelligent Network that fit their exacting needs.

PE firm engaged their ideal provider to move forward with diligence efforts 

Within 24 hours of the initial scoping call, the PE firm was introduced to two PE-grade tech diligence providers that specialized in the software industry. The client selected their ideal provider, and the PE firm was able to confidently evaluate the company’s software and its ability to scale. The technology diligence group not only evaluated the current software but was also equipped to provide the firm with recommendations for how to move forward.

Pre-close recruiters immediately needed

PE firm has critical need for pre-close recruiters for a target company

An investment executive at a large cap PE firm came to us with a critical need to source trainers and university recruiters for a target company in the engineering industry. Prior to closing on the target company, the PE firm wanted to explore the available selection of talent they would have if the deal closed, and they chose to expand the UK-based company into the USA market. The investment executive urgently needed a PE-grade pre-close recruiter who could source the trainer and university recruiter candidates – both of which required a unique skill set and background.

BluWave has in-network, PE-grade recruiters with industry experience

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade pre-close recruiter needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of non-executive recruiters that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria. Then we connected the client with the select pre-vetted recruiters from our invitation-only Business Builder’s Network that fit their exacting needs.

The firm was equipped with the proper talent sources to proceed with their deal

Within less than 24 hours of the initial scoping call, the PE firm was introduced to a PE-grade non-executive recruiter that specialized in sourcing trainers and university recruiters for engineering technology roles. The client selected the presented provider and was able to confidently and quickly move forward in their diligence process, equipped with the necessary insight on the available talent they would need to drive value post-close.

Instant solution for specific IT due diligence need

PE firm needs IT due diligence provider to assess target company

A managing director came to us with a critical need for an IT due diligence provider to assess a target company in the manufacturing industry. The portfolio company was a multi-site signage company focused on design, project management, and manufacturing. The managing director needed a provider located in the southeast who could assess scalability and risk with industry-specific technology while also having excelled in prior work with PE firms.

BluWave identifies IT diligence provider with specific manufacturing knowledge

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade IT diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of IT diligence providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted service provider from our invitation-only Intelligent Network that fit their exacting needs.

Firm uses diligence provider to properly evaluate target company

Within less than 24 hours of the initial scoping call, the PE firm was introduced to the exact fit, PE-grade diligence provider that specialized in assessing manufacturing-related technology. The client engaged the provider we presented them with and was able to confidently evaluate the target company and gain the insights they needed.

Buyside M&A Advisory Firm Needed to Assess Target

VP needs buyside M&A advisory firm in healthcare sector

A LMM VP was looking to complete a critical buyside search and came to us looking for the top buyside M&A advisory firm. Having already explored their investment thesis for the past nearly nine months on a healthcare practice, they were looking for an expert in this sector. Their criteria included specific, deep PE experience and a preferable Midwest location. Since the PE firm was just beginning to fundraise, they were looking to begin working with this resource within the next week.

 

Measuring against specific criteria, BluWave identifies exact-fit M&A advisory firm

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade buyside M&A needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of buyside M&A advisory firms that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted buyside M&A advisory firm from our invitation-only Business Builders’ Network that fit their exacting needs.

 

Firm engages with the PE-grade, industry specific provider

Within the same day of the request, the PE firm was introduced to a buyside M&A advisor firm that was an exact-fit service provider. Specializing in healthcare, this service provider had deep sector and PE experience. The client engaged with the provider and they were able to complete a market study on the target, in addition to advising the client on their investment thesis.

 

Voice of Customer diligence needed for acquisition target

Managing director needs Voice of Customer research for target company

A middle-market PE firm Managing Director needed to perform Voice of Customer (VoC) research on an acquisition target that specialized in the SaaS space. Having just signed exclusivity on the potential new platform, time was of the essence and the firm wanted to quickly engage a consultant that specialized in B2B aggregate customer feedback. The PE firm had two weeks to complete this diligence work due to the LOI timeline.

BluWave identifies two pre-vetted, PE-grade providers

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade VoC needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of VoC consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted VoC consultants from our invitation-only Intelligent Marketplace that fit their exacting needs.

Connecting to an exact-fit VoC Consultant, the research could begin immediately

On the same day the PE firm initially reached out, they were introduced to two exact-fit, BluWave-vetted VoC consultants that we had identified in meeting their exact PE, SaaS, and B2B experience criteria. The client selected their ideal choice and was able to immediately begin the VoC work with identifying which customers to interview, ensuring it represented a broad spectrum, and advising on the customer interview questions. The service provider was able complete the VoC research within the PE firm’s tight deadline.

Immediate HR diligence provider needed

PE firm has critical need for HR diligence provider for target company

A middle market PE firm partner approached us with an immediate HR diligence need for a software-based portfolio company that they had under LOI. The PE firm wanted to take their typical HR diligence efforts to the next level and were looking for a group that could look at the available HR information in the target’s data room, summarize weaknesses and gaps, identify any existing employment issues, and more. There was no formal HR team currently in place, and the PE firm was eager to have a team not only dig around and make recommendations pre-close, but also be able to come in and fix the gaps they identified post-close.

BluWave identifies PE-grade diligence group specialized in software companies

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade HR diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted specialized HR diligence providers from our invitation-only Intelligent Marketplace that fit their exacting needs.

Firm confidently engages with provider, gaining insight into target company

Within 48 hours of the request, we introduced the PE firm to an exact-fit service provider that specialized in performing HR diligence for PE firms evaluating software companies. The client quickly engaged the provider who was able to begin the diligence work within the next week. Thanks to their exact-fit background, the service provider was able to quickly gain meaningful insight into the company’s HR practices that gave the PE firm the information they needed to be confident in moving forward with the transaction.

Big Data Analytics Consultant Critically Needed

Urgent data analysis needed to evaluate portfolio company

A LMM VP came to us with an urgent big data analytics need for a technology-focused portfolio company that they were evaluating. The PE firm recently retained access to some of the target’s transactional data sets and the size of them was overwhelming. They needed an expert with a strong analytics and B2B background that could take the data and create cohort analyses from it. With LOIs due in one week, they urgently needed a consultant that they could connect with pre-LOI so the consultant could then hit the ground running post-LOI.

BluWave has pre-vetted analytics consultant specialized in diligence

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade big data and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted specialized consultant from our invitation-only Business Builders’ Network that fit their exacting needs.

Firm engages exact-fit data analytics consultant to immediately start project

Within the same day of the request, the PE firm was introduced to an exact-fit provider that specializes in analytics consulting during diligence. The client was engaged and was able to start the project immediately post-LOI. The provider was able to dedicate their resources to create a systematic method of creating meaningful analyses from the data sets and ultimately provide the client with the exact insight they needed.