The smartest investors donโt โguess.โ They do brutal Commercial Due Diligence.
Hereโs how top PE teams uncover the truth before buying a business (Thread).
@paulg Interesting. I always wondered if you could use specific employee metrics (e.g., how often sending emails, how often using their keyboard) would actually indicate if you have a high-performing employee.
@PEoperator Thank you for sharing. In the current market environment until summer 2025, I would rather calculate with 12-18 months of sales process, as there are many PE funds trying to sell their assets, meanwhile a lot of dry powder is not used according to Bain.
What is a master list of most common value drivers in PE? I will start: 1. Achieve operational and financial efficiency with a) better governance, and reporting, b) promotion of mgmt accountability through incentives, and c) reduction of operational complexity.
@aakashgupta Agreed, but making a meaningful effort to deep dive on other job families helps you to communicate and understand their point of view, and ultimately helps you to become more effective in your work.
@charlesmiller_7 Apart from Marcus Aurelius, Zeno, Diogenes, Cicero, Cato the Younger, Seneca, and Epictetus are note-worthy representatives of stoicism.