SBI for Private Equity: Due Diligence

SBI has completed hundreds of due diligence assessments across various industries to help PE clients identify and quantify the value creation levers within the Go-to-Market function. Our agile process provides the flexibility for firms to meet evolving commercial needs during the assessment to identify critical root causes while aligning on the investment thesis.


We pursue 4 broad categories of value creation for clients and map each opportunity based on the company, market, and current state as well as how they answer a series of questions such as,


  1. Are the unit economics appropriate for the market?
  2. Is the go-to-market model built appropriately for the customer profile they are chasing?
  3. Are pipeline velocities, top-line growth rates, and conversion rates on pace with the market?


Key Areas of Assessment


SBI has a rapid, rigorous, and proven 3-step process for each assessment, including a data-driven diagnosis, evaluation, and plan for implementation. The analysis is backed by benchmarking and industry best practices to identify opportunities and risks on a revenue and/or EBITDA improvement basis. Recommendations are prioritized to balance expected effort & impact.


Our approach analyzes key go-to-market metrics, including benchmarking to the peer group, plus qualitative reviews that often include customer interviews and competitor mystery shops.




Due Diligence Output Framework


The assessment is broken down into 5 critical areas to provide perspective on GTM strengths and weaknesses of the target investment with risks outlines and mitigation plans to be developed. The results offer recommended growth levers to maximize value creation.



Summary and Identification and of Key Revenue Growth Levers

Results from the assessment are summarized by value creation lever and prioritization, including the diagnostic fact base for each as well as bookings/revenue lift, cost savings, and any incremental investments.

Overarching Risks Evaluated and Mitigation


Based on our assessment of the business the critical risks to the investment thesis are prioritized with specific mitigation actions and steps identified.



Identification of Growth Opportunities


SBI is a firm comprised of former sales and marketing practitioners focused on providing execution excellence for our clients with recommendations to support growth. By identifying the risks, mitigations, and growth opportunities with a recommended timeline, each PE firm has access to a customized road map of initiatives for their first year of the investment thesis.



For more information on our Private Equity offerings, speak with an expert.



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