Diligence with operating depth.
Assessing a business requires commercial judgment and operating depth together. We bring twenty years of running businesses, developing the products and services they sell, and negotiating transactions to every assessment we make.
What we examine, and the question behind it.
Revenue quality and durability, pricing power, unit economics, customer and channel concentration, and whether the go to market plan is repeatable or dependent on individuals.
Where demand is moving, competitive position and defensibility, barriers to entry, and whether the market supports the growth assumed in the model.
Delivery and service performance, vendor and supplier dependencies, contractual obligations to customers, and the operating cost base under a larger volume.
Architecture and platform maturity, technical debt and what it will cost to clear, security posture, build versus buy decisions, and whether the systems support the growth in the model.
Key person dependency, capability against the plan, compensation and retention exposure, and the organizational gaps that appear the day after close.
From initial review to the first hundred days.
Thesis validation
We test the investment thesis against the business and the market before the process consumes time and fees. Where the thesis does not hold, we say so early.
Due diligence
Objective insight, operating experience, business model review, and a comprehensive analysis across all five domains, on the deal timetable.
Transaction support
Findings translated into consequences: red flags, price adjustments, day one priorities, and the first year capital plan the asset requires.
A position the investment committee can act on.
Each engagement concludes with a written assessment: what we found, the level of confidence behind it, and the financial consequence.
- A domain by domain assessment across commercial, market, operations, technology and organization
- Findings ranked by financial consequence, separating red flags from ordinary industry practice
- Remediation estimates with cost and timeline, usable in the model
- Day one and first hundred day priorities for the operating plan
A diversified fund's first move into an unfamiliar sector.
- Client
- Lynx Equity
- Target
- Granite
- Industry
- Fiber optics
- Service
- Due diligence support
- Outcome
- Acquisition completed, 2022
The situation
Lynx Equity is a private equity firm with a diversified portfolio of more than fifty companies. It was embarking on its first investment in a sector it did not know, with limited in-house experience and a process already running.
What we did
Blau & co. was retained to provide due diligence support: strategic guidance, business analysis and market analysis. Working from a defined methodology and a rapid assessment of the sector, we operated as a virtual extension of the Lynx M&A team.
The review covered the target's commercial position, market, operations, technology and organization, and produced objective insight the fund could take to its investment committee.
The outcome
Lynx had the commercial and operational analysis it needed to proceed with confidence. The acquisition of Granite completed in 2022.
Ari and his team were a great resource for us on this deal. We found an excellent opportunity to pursue, but since telecommunications was a new vertical for us, we required great depth of insight and experience in a short amount of time. We were able to rely on Ari, who took ownership of his involvement in our process and provided strong support both on the technical side and the operational side. As we grow our footprint in this market, we will be sure to include Ari for his expert counsel.
To discuss a business, a transaction or an exit.
Inquiries from founders, investors and advisors are welcome, whether a transaction is underway or still under consideration.