Private equity firms are renowned for the deal discipline that guides their decision about when it makes sense to proceed with an investment and when it's best to walk away. Bain understands this discriminating mindset and brings analytical rigor, independence and a vast range of industry and functional expertise to the painstaking work of vetting a prospective buyout target or investment opportunity.
We help clients flesh out their investment thesis of how a proposed deal will make money. We then work with clients to test the investment thesis by concentrating on the big issues that will determine the deal's ultimate success. Taking an "outside-in" approach, we combine fieldwork interviewing customers, suppliers and competitors with sophisticated financial analysis to build a proprietary understanding of the investment's true cash flow potential. Combining top and bottom line analysis, we build an integrated view which allows to understand realistic P&L shape and set winning price package during the bidding phase. Finally, as part of the due diligence process, we help clients develop an agenda for creating value once the deal is closed.
Our experience and worldwide network allow us to help clients quickly develop an accurate assessment of key industry performance issues, including cash flow drivers, relevant market and customer benchmarks and exit options. In addition to external assessment, as timing and protocol allow, we also conduct a thorough internal one, interviewing the target company's management, as well as reviewing its customer base, personnel and operations.
Bain can support all stages of this process, including presentation of letters of intent, provision of objective, third-party business analysis to enable financing and the generation of enthusiasm for the deal within the target company.