Many Private Equity companies while making an investment do a thorough job assessing leadership, financials and the core product/service and associated technology of the candidate company. But these constitute only 3 of the four legs of the company. The more difficult fourth leg is often missed and very often causing to trip.
What is that fourth leg: Most businesses operate end to end business processes covering all aspects of business from order to cash and many of them use either individual or enterprise wide applications. These processes, associated technologies and people that operate them (referred to as BP systems) are the Cardio vascular system of a business. Understanding of the nature and state of the BP systems is critical to achieve investment goals through reorganization and/or expansion by organic and inorganic growth.
Assessment of Business process systems and plan for ERP after the acquisition is the critical fourth leg and will ensure a successful acquisition.