Framework for Evaluating Investment Cases in Due Diligence PPT

This PPT slide, part of the 63-slide Commercial Due Diligence (CDD) PowerPoint presentation, outlines a structured approach to evaluating an investment case within the context of due diligence. It emphasizes the necessity of developing a clear perspective on the investment case while identifying potential areas for improvement and associated risks. The objective is to assist private equity firms in substantiating their investment assumptions and recognizing key risks and opportunities.

Three primary subcomponents are highlighted. The first is Investment Case Development, which focuses on identifying the key assumptions that underpin the investment case. This involves creating an EBITDA tree for the target company and developing base case projections. The link between these assumptions and factors such as market conditions, competition, and business model analysis is crucial for a comprehensive understanding.

The second subcomponent, Investment Case Assessment, delves into the robustness of the key assumptions. It requires identifying key value drivers and assessing the underlying assumptions related to these drivers. This step is essential for validating the investment case and ensuring that the assumptions are well-supported by market and competitive insights.

Lastly, Risk and Reward Analysis addresses the potential upside opportunities and risks associated with the investment case. This analysis aims to present both upside and downside scenarios to evaluate the overall balance of the investment case. By systematically addressing these components, the slide provides a framework that can guide decision-making and risk management for potential investors.

Overall, this slide serves as a critical tool for private equity firms, helping them to navigate the complexities of investment evaluations and make informed decisions based on thorough analysis.

This slide is part of the Commercial Due Diligence (CDD) PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It explains the approach to Commercial Due Diligence utilized by global strategy consulting firms.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Due Diligence Risk Management Private Equity

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The

... [read more]

– Roderick Cameron, Founding Partner at SGFE Ltd

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.