Use insights to mitigate risk and create value for private equity.
You've honed your thesis, identified a target, and sent out your LOI. Now it’s time for due diligence. How do you validate that your acquisition target has the loyal customer base they claim without disrupting relationships?
Customer Due Diligence
More Value Pre & Post-Close
We work with private equity to deliver due diligence focused on the customer. In less than 30 days, we deliver actionable strategies that help you mitigate risk and jump-start value creation. Our approach helps you quickly identify at-risk customers, uncover opportunities for growth, and ultimately, enhance a portfolio's sell-side positioning.
A process that delivers more value
Our process helps to mitigate customer concentration risk, identifies accounts at-risk, and develops a post-close value-creation roadmap. In many of our engagements, our work has impacted either the value of the deal or even the decision to purchase the asset.
Comprehensive customer insights
We go beyond market research. We conduct customer insights engagements to help close deals with confidence, increase the odds of success, and exit faster. We provide fast insights using in-depth interviews, web surveys, and 80/20 data analysis.
Our work uses voice of the customer methodologies to uncover:
Customer concentration
Net Promoter Score (NPS)
Competitive benchmarking
Brand perceptions
Wallet share
Optimized for faster growth
Unlike other due diligence and private equity advisors, our expert team works with you to add value post-close. We deliver customer insights and an action plan that enable private equity clients to grow faster, sell faster, and achieve a better ROI.
Diligence that moves at the speed of business
<30
Days needed to complete an engagement
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Dramatically improve your financials with time-tested processes that improve net income and grow profitability. Our 80/20 Profit & Growth approach to strategic planning drives profitable market share growth.
When you buy a company you are essentially buying its customer relationships. After all, what’s a company worth without revenue? But what if those relationships are damaged and what if revenue is at risk? Buy-side customer due diligence allows you to mitigate this risk by validating the strength and stability of a target’s top accounts. Beyond that, customer due diligence also uncovers insights that can be used to retain at-risk accounts and develop post-close playbooks for profitable market share growth.
Post-Close Diligence
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Post-Close Diligence
Post-close, it's common to run into customer-related barriers to executing the investment thesis. In fact, customer churn and wallet share declines are the leading causes of M&A failure. Post-close diligence is a rapid response tool to diagnose issues within your customer base while also providing a prescription to get you back on track.
Sell-Side Diligence
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Sell-Side Diligence
Sell-side customer diligence is a perfect complement to your pre-sale quality of earnings. It allows you to assemble a compelling go-to-market strategy. Armed with strong financial and customer insights, you can attract more buyers, expedite the sales process, and maximize your ROIC.
Buy-Side Diligence
When you buy a company you are essentially buying its customer relationships. After all, what’s a company worth without revenue? But what if those relationships are damaged and what if revenue is at risk? Buy-side customer due diligence allows you to mitigate this risk by validating the strength and stability of a target’s top accounts. Beyond that, customer due diligence also uncovers insights that can be used to retain at-risk accounts and develop post-close playbooks for profitable market share growth.
Post-Close Diligence
Post-close, it's common to run into customer-related barriers to executing the investment thesis. In fact, customer churn and wallet share declines are the leading causes of M&A failure. Post-close diligence is a rapid response tool to diagnose issues within your customer base while also providing a prescription to get you back on track.
Sell-Side Diligence
Sell-side customer diligence is a perfect complement to your pre-sale quality of earnings. It allows you to assemble a compelling go-to-market strategy. Armed with strong financial and customer insights, you can attract more buyers, expedite the sales process, and maximize your ROIC.
Add Value. Sell Faster. Recoup the Multiple.
Customer Due Diligence helps you mitigate risk and validate the purchase. Plus, you can incorporate our results into strategic planning to grow and sell the company faster.
Our private equity solutions extend beyond customer due diligence. We also offer value creation consulting. At the core of this offering is a qualified team of business veterans, many of whom were involved in the genesis of 80/20 as a business philosophy. Many of our experts have been successful leaders of highly profitable mergers and acquisitions.
“Good customer due diligence allows us to leverage some of the positive aspects of a company while surfacing competitive risks and exposures at the same time. We rely heavily on the Net Promoter Score which influences how we think about the potential for future market share gains and losses.”
- David W. Schroeder, Operating Partner - Baird Capital -
“Strategex’s work is maybe the most important aspect of due diligence. The investment will either likely be a success or not a success depending on how we respond to what we heard during the CDD. It’s totally invaluable.”
- John Castle, President & CEO - Branford Castle -
“Our Management team really values that work and the end report, more so than the quality-of-earnings report and some of the other financial analysis.”
- Christina Miller, Principal - Norwest Equity Partners -
“Strategex provides us with a mechanism to help us understand where our companies are with their customer relationships, where they can improve them, and a mechanism to help improve them. Strategex takes the risk out of the equation.”
- Dennis Hall, Global Head of Portfolio Operations - Baird Capital -
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