GRAPH Strategy

Jeff Merkle says ... you can build better habits. Private Equity investing has been described as a combination of art and science, calling on a wide range of disciplines to make good judgements. In that spirit, I wanted to share a few thoughts I use to test my own judgment. They all surround a central question: What am I missing?

http://www.graphstrategy.com/papers/articles/building-habits-to-reduce-due-diligence-mistakes/

Building Habits to Reduce Due Diligence Mistakes

http://www.graphstrategy.com/papers/articles/commercial-diligence-tips-for-tech-enabled-service-businesses/

Commercial Diligence Tips for Tech-Enabled Service Businesses Many recent PE deals have targeted businesses that apply technology to help customers streamline processes which have previously been manual and “paper-based.”

http://www.graphstrategy.com/papers/articles/diligence-trappings-of-lawn-sign-decisions/

Diligence Trappings of Lawn Sign Decisions Regardless of where any of us stand on a political spectrum, there is a superbly valuable due diligence lesson for investment teams that derives from the behavioral sciences of psychology and politics. There is a dangerous trap that we refer to as the lawn sign decision.

We are hiring again. Experienced - and super smart 🙂 - Strategy Consulting Managers and Directors who LOVE our work. Let’s us know if you or someone you know want to talk.

http://ow.ly/iOVy30jVgw2
Many companies are being “shopped” with a promise of having transitioned to a “new-core business” aligned to attractive themes. Jeff explains how to keep a level head in evaluating, and the opportunity to increase associated potential for value generation

When is past performance actually a good guide to future performance? GRAPH investigates how Commercial Due Diligence can tackle the question of whether growth burst is repeatable.

Over the years, I have heard multiple M&A professionals say “we don’t underwrite hopes and dreams,” by which they mean new tactics proposed, but not tested, by Management (and their bankers). What is not discussed as often are the new tactics that have been tested…but that are destined to work just once. These tactics are what we call unrepeatable growth stimulants, UGS (or just, “ughs”).

Read More: http://ow.ly/CNs630jxlym

How a commercial diligence exercise can create momentum, and market share shift, post acquisition.

Diligence and the Ownership Change Using Commercial Diligence and the Ownership Change to Leverage What Matters to Customers

Any company that "connects" individuals or businesses benefits from network effects. Understanding network strength can help to assess and unlock value. Here is a commercial diligence guide to identifying the companies best suited:

http://ow.ly/XHx930iOdWk

When you discover the intersection of business and customer value drivers, you drive multiple expansion - a necessity in today's market.

http://ow.ly/SDVF30iIGmC

GRAPH loving its Pie - thanks Lisa Catalone!

Asking customers directly (e.g., in a survey) about willingness to tolerate price increases is a significantly flawed method. In commercial diligence there are three things to resolve to determine the opportunity to improve margins with price. Here's how http://ow.ly/m9cM30hZDSM