When developing a private equity deal thesis, it is important to consider a wide range of inputs.

 Written by:  The PE Guru – Gerald Moran O’Dwyer, III – Blackmore Partners, Inc. 

When developing a private equity deal thesis, it is important to consider a wide range of inputs to gain a comprehensive understanding of the target company and the potential investment opportunity. Here are some additional inputs you might consider: 

• Market size and growth: Assess the size and growth potential of the market in which the target company operates. Identify any untapped market segments or opportunities for market expansion. 

• Technology and innovation: Evaluate the target company’s technology and innovation capabilities and assess how they compare to those of its competitors. Identify any opportunities for the company to leverage technology to gain a competitive advantage. 

• Supply chain and logistics: Analyze the target company’s supply chain and logistics, including its sourcing, production, and distribution processes. Identify opportunities for cost savings or efficiency improvements. 

• Legal and regulatory: Investigate the target company’s legal and regulatory environment, including any pending lawsuits or regulatory investigations. Identify any potential legal or regulatory risks that could impact the investment. 

• Human capital: Assess the target company’s human capital, including the qualifications and experience of the company’s employees. Identify any gaps in the management team or opportunities for talent development. 

• Brand and reputation: Evaluate the target company’s brand and reputation in the market and assess its impact on the company’s financial performance. Identify any potential risks to the company’s reputation that could impact the investment. 

• Environmental impact: Investigate the target company’s environmental impact, including its carbon footprint, energy consumption, and water usage. Identify any potential environmental risks or opportunities to reduce the company’s environmental impact. 

• Social impact: Evaluate the target company’s social impact, including its impact on the local community and its employees. Identify any potential social risks or opportunities to improve the company’s social impact. 

By considering these additional inputs, you can gain a more comprehensive understanding of the target company and the potential investment opportunity, which can help you better evaluate the potential risks and rewards associated with the investment.