SFE Partners转发了
Sales diligence doesn’t literally save lives – but it can absolutely save careers. Yet, it’s still one of the most overlooked components of M&A due diligence. ? I recently worked with several middle-market Private Equity firms and have seen firsthand the consequences of skipping dedicated sales diligence. In each case, generalist operating teams were tasked with assessing sales – only to be blindsided post-close when pipelines, customer relationships, partners, and even the sales team itself didn’t match what was presented. The common thread? Diligence meetings stacked with “friendlies” and surface-level assessments that masked deeper issues. The result? Post-close surprises, downward revenue revisions, and extended hold periods. ? Relying on generalists to evaluate sales is like asking your CRO to run a quality of earnings analysis – it’s not their area of expertise. Sales diligence requires experienced, senior sales operators who can identify the real risks, dig into what’s driving performance, and quantify the cost of professionalizing the function. The goal isn’t to kill deals, it’s to bring clarity to near-term revenue expectations and ensure the investment thesis holds up under scrutiny.? ? If you’re in the deal process or planning for one, don’t overlook sales diligence. If you’re unsure where to start, let’s connect. I’m happy to share a proven checklist and walk through what a healthy process should include. #PrivateEquity #MergersAndAcquisitions #DueDiligence #SalesStrategy