J. Neely’s Post

Comprehensive #DueDiligence and #ValueCreationPlanning are the key to unlocking a deal’s full potential. More Investment Committees are requiring greater depth and rigor in the pre-deal process around data-driven convictions (not themes) that drive post-close value. The pre-deal phase is getting more attention. Our GenAI screening shows a 2.4x increase in mentions of due diligence, 7.7x of sourcing and screening, and 3.8x of value creation planning in YOUR PE earnings calls and articles. Still, 83% of #PrivateEquity leaders believe their current practices require substantial improvement. Together with Neto Alexander, at SuperReturn we shared Accenture research highlighting three critical approaches that can transform traditional due diligence and value creation planning into a dynamic, data-focused, value-driven process. I encourage you to watch the replay of our keynote here: https://lnkd.in/eHQNB2Xb Or access the full research report here: https://lnkd.in/eYjTfrgK    

Is your asset prepared for a new era of due diligence? Private Equity firms are harnessing the power of data and analytics to substantiate the financial worth of assets. Through this approach, they are also able to accurately measure the potential value of targets during the diligence phase. #PrivateEquity #DataAnalytics #DueDiligence #KPMGElevate #KPMGValueCreation #KPMGDeals

#PrivateEquity firms actively look for ways to optimize revenue, costs, and working capital in their portfolio companies by participating in risk-sharing arrangements with trusted partners. I had the pleasure to co-author the article with Jesper Strømann, Neto Alexander, Suzie Blinman, Felix Hessel, Himanshu Patney on how #privateequity firms are pushing the boundaries of operational value creation, leveraging strategic managed services. Strategic managed services add speed, boost predictability, and reduce risk for private equity firms. As such, they should be considered as part of every portfolio company’s full-potential plan regardless of size. https://lnkd.in/dAv5PPat

83% of PE leaders say their current due diligence approach has substantial room for improvement. Due diligence today is much more than risk assessment and should be value creating. The competitive edge starts pre-deal and technology including generative AI can improve both efficiency and effectiveness of pre-deal activities. I’m thrilled to share that our report “Private Equity – It’s time to rethink due diligence” is now ready to be explored. Working alongside Jay Scanlan, Rachel Barton, Martin T. (Marty) Glenn, Neto Alexander has been an absolute pleasure. The collaboration with top leaders has truly elevated our work and I firmly believe that our efforts will provide significant value to Private Equity firms and their portfolio companies. https://lnkd.in/gkYmDRdg #PrivateEquity #ValueCreation #ThoughtLeadership Francis Hintermann, Philippe Roussiere,Pradeep Roy,Sybille Berjoan, Ranjan Ramdas, Ben Liwnicz, Ramani Moses, Abhigyan Chand, Uday Khanna, Harrison Price, Tristan Spek, Christopher Hoad

PE leaders overwhelmingly agree that higher-quality diligence consistently enhances value creation planning. At the same time, 83% of them say their current due diligence approach is suboptimal. Yet, only 10% of PE firms have made significant investments in technology to improve pre-deal activities. Technology, ML and GenAI are starting to have an impact on what have largely been manual and siloed processes. These tools are enhancing the ability to look across diligence silos, ingest deal data, merge unstructured public and proprietary data sets - to improve deal insights and value creation plans that can position PortCo's for greater impact in the early years of the hold.   I highly recommend diving into our latest thought leadership report, It’s time to rethink private equity due diligence, by Jay Scanlan, Rachel Barton, Neto Alexander, Himanshu Patney and myself, which we premiered at SuperReturn in Berlin earlier this month.   Being part of the creation of this piece has been a privilege. Read on and immerse yourself in our latest on pre-deal insights. https://lnkd.in/eMAr9tEQ

Many #PE leaders and portfolio company managers are leveraging data and analytics to tangibly increase the financial value of their assets and accurately quantify the potential value of targets during the diligence process. At @KPMG_US, our data-driven approach to value creation combines proprietary data, insights, and operational experience to help buy-side and sell-side players identify, quantify, and execute significant #value creation opportunities. We’ll be at @Private Equity International’s Operating Partners Forum New York 2024 from October 22-23, 2024 discussing this topic and as well as other ways you can increase the financial value of your assets and accurately quantify the potential value of targets. Let us know how we can help. #PEIOperatingPartnersForum #KPMGPrivateEquity #PrivateMarkets #NetworkingEvents #OperatingPartner #NYCNetworking #NYCEvents #PEIOP #dataandasnalytics #datadriven https://lnkd.in/dGHU_ftG

One quick and highly effective tip for private equity firms is to leverage sector-specific expertise during the due diligence process. Engaging professionals or consultants with deep knowledge and experience in the target company's specific industry can provide invaluable insights into market trends, competitive dynamics, regulatory issues, and operational challenges. This expertise is instrumental in identifying hidden risks and opportunities that might not be apparent through financial analysis alone, thereby leading to more informed investment decisions. Do you agree? ---- #pe #privateequityfirms #rhodiumanalytics #duediligence

What has the M&A Community team been reading this week? Our selection of top posts includes a useful list of M&A terminology, a helpful explanation of venture capital, and an overview of M&A in the food and drink sector. A new KPMG report looking at how M&A can be more agile and data-driven without compromising on due diligence or value creation https://lnkd.in/dYmV74cK After a recent flurry of M&A, Roland Berger’s Michelle Briffett asks what’s next for the speciality food and drink sector https://lnkd.in/dnVyve4G A handy glossary of the key terms used in M&A https://lnkd.in/dpD_YBca A comprehensive summary of everything you ever wanted to know about Venture Capital https://lnkd.in/dehPeh2E Finance enthusiast Sanjivanee Khot reveals which sectors are best for PE https://lnkd.in/dAQrUVaS

We're seeing a fundamental shift in how PE firms approach value creation. In our latest report, we interviewed around 200+ PE executives to understand how they're adapting to a changing market: a new focus on data-driven decision-making, operational efficiency, and technological innovation. Get the full story and see what's next for private equity: https://lnkd.in/dsTyHazC #PrivateEquity #ValueCreation #AMon

Excellent insight from Bain on the Global Private Equity market!