Private Equity

Private equity firms look to sellers for due diligence on deals

Private equity firms are relying on sell-side due diligence to expedite deals, but this sharing habit hides risks

Private equity firms look to sellers for due diligence on deals
Photo: Sorbetto / Getty Images

Buyout firms have adopted measures to speed up due diligence as they battle to deploy $1tn of accumulated capital, known as dry powder.

Excess stores of cash have stoked competition for good-quality assets. So, in today’s fast-paced deal scene, firms have limited time to research companies they intend to buy.

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