Mitchell Equity supports middle-market private equity sponsors in the identification, review and pursuit of investment opportunities. We collaborate with private equity sponsors to create research, financial models, investment memoranda, and in the overall evaluation process.
Due Diligence Review Process
As part of our due diligence, we seek to gain a thorough understanding of the opportunity, customer sensitivities, key value drivers, management’s challenges, and risks. Although each situation is unique, the foundation of our due diligence process includes the following.
- Nature of Investment Opportunity
- Review of Fundamental Analysis (Business Model, Customers, Suppliers, Historical Performance, Breakeven, Contribution Margin, Fixed Costs, ROA, ROE, Etc.)
- Reason for Under-Performance
- Customer Trends and Sensitivities
- Industry Review – Size, Growth, Trends
- Competitive Strengths and Weaknesses
- Interviews or Meetings with Company Management
- Interviews with Industry Contacts
- Detailed Capital Structure Analysis
- Forecast of Earnings and Cash Flow Analysis
- Valuation Review
- Comparable Company Analysis
- Liquidation / Break-Up Analysis
- Potential IRR of Investment
- Review of Legal and Corporate Governance Issues
- Risks of Investment