Deal Sourcing & Due Diligence

 

Media / Investor Relations
Hess Group International Address:
J/F Kennedy Street 6 3106 Limassol, Cyprus
info@hessgroupinternational.com

RELEASE DATE
February 17th, 2020

At the very essence, being successful in private equity (PE) means to void making bad deals and concentrate on making rewarding good deals. In order to get those good deals, one must focus on two key areas: deal sourcing and due diligence.

Deal sourcing is the process where PE firms will research on investment opportunities and identify nominee firms. Nowadays, the field of mergers and acquisitions is crowded and competitive, PE firms have to come up with sophisticated sourcing strategies which will capitalize on a firms network within the business community, thus bringing a unique message to target companies. There are so many deals available, so as you can imagine PE firms filter out those that they don’t find fit for investment. On the other hand, they will focus on a very few companies that are a good fit for investment.

As an investment passes through, the next step is due diligence (DD). This is a critical step where PE firms employ internal and external manpower in order to explore all material aspects that are related to the investment in an investee firm. PE firms actually explore many different aspects which are related to investment in the target company, but they do follow a structured process and focus on several DD areas. Finding from the DD process are presented to a firms investment committee (IC), which decides whether an offer should be submitted.

Deal sourcing and DD are the crucial processes which are not as simple as they might seem. Learn more about proprietary and intermediated deals, as well as a typical DD process.

For more information, please visit our social media channel – @hessgroupinternational

 

Contacts

For more information, please contact

Media / Investor Relations
Hess Group International
Address: J/F Kennedy Street 6
3106 Limassol, Cyprus
ir@hessgroupinternational.com