Do
Diligence
Navigating the Due Diligence Process to a Deal
Diligence Confidently.
Due diligence is intense. In short, it’s a process by which you produce all the documentation and answers to verify the history, relationships, and operations tied to your company.
At Permanent Equity, we’re curious about the ins and outs of who you are, what you do, and how your business operates. We do the work internally, directly with your team, in order to learn, discuss, map a shared reality, and fill in details that both create a great deal and set the table for post-close success. It’s not third parties checking boxes.
Done well, the diligence process is partnership onboarding.
Purpose.
Process.
Posture.
Pain Points.
Our Diligence Checklist.
Access the
Interactive PDF.
Listen to Our Podcast on Diligence
Purpose.
Due diligence is about building relationships while building the deal.
You know your business better than anyone else. We want to see the reality of who you are, what you do, and how your business operates. Diligence is how you help us see what you see in your business.
Put another way, diligence helps us confidently take risk.
Process.
Asking over 180 questions may sound extreme, but there’s a method to what we ask, when, and why it matters.
Our full diligence checklist has 181 questions and requests. (Yes, really.) But it’s not as intimidating as it seems.
We see diligence as the foundation for a long-term partnership. We approach the process with curiosity, not judgment. And through information exchange a framework takes shape on how we can best steward the company.
So you’re going to get a lot of questions – but they boil down to:
Who are you?
What do you do?
Where are the risks?
What else should we know?
Access the Interactive PDF.
Posture.
Diligence is about ensuring we see the same reality.
“That was actually really helpful and valuable.” That’s an actual quote from an owner to us after completing diligence.
There’s no other way to say it: We’re not trying to screw you over or find reasons to kill the deal or blow up problems to lower our offer. We want to understand the risks and challenges that face your company and work together to create solutions and become good long-term partners.
Pain Points.
There’s an old saying that every deal dies at least three times. But problems ≠ deal-killers.
There is no perfect company (and we’re not perfect either). By the time we get to diligence, we’re committed to making a deal happen – that means problem-solving and brainstorming together. But that doesn’t mean there aren’t bumps, hiccups, and roadblocks. So why would a deal go sideways? Problems usually stem from communication issues or an inability to find shared reality.
Preparing to Close.
Diligence doesn’t exist in a vacuum. The point is to move forward in a transaction where everyone wins. We’ve had conversations, built trust, and put together a business deal that makes sense. As the diligence process winds down, it’s time to formalize the business deal.
In other words, it’s time to bring in the lawyers and draft closing documents…
