Pre-Investment Due Diligence Prompts C-Level Change

A leading private equity firm engaged us to conduct due diligence on a potential technology platform investment. Our investigation found that the company’s CFO had been the target of an SEC investigation at a former employer and had quietly resigned during that probe -- despite the CFO not being named in the relevant public documents. 

We discovered evidence of the CFO’s apparent role in the alleged fraud in court filings associated with another, otherwise benign-looking litigation.

The client proceeded with the deal and simultaneously replaced the CFO.