pRIVATE EQUITY CUSTOMER DUE DILIGENCE
T4 Associates provides data-driven customer insights that help private equity firms increase confidence, mitigate risk, validate strategy, and maximize portfolio value.
With 60+ private equity firms served by our core team and 175+ deals under our belts, we uncover the truths that financials and commercial diligence can’t.
Customer Diligence Speaks for Itself
T4 Customer Due Diligence goes beyond surface-level insights—we get to the core of what your customers really think.
We assess the stability of customer relationships, identify at-risk accounts, and provide actionable strategies to protect and grow value.
We start by pinpointing key revenue drivers, then conduct in-depth, expert-led interviews with your most valued relationships—customers, lost accounts, prospects, channel partners, and suppliers.
They reveal everything—their satisfaction, concerns, and future loyalty.
You get the intelligence you need—before you close the deal.
Case #1: Customer Interviews Saved the Buyer $25 Million
The Context: A multinational packaging company was considering acquiring a business in South Africa. The business had strong customer relationships and a well-established market presence, serving major global food companies.
The Work: T4 conducted interviews with the target’s top 15 accounts, representing over 80% of revenue.
While the company’s reputation for quality and service was confirmed, customers revealed a major issue: prices were under serious pressure due to an influx of imports from Africa, Turkey, and the Middle East, all 20-25% below market.
Every customer indicated that price concessions were expected, or they would reduce their purchases.
The Result: Armed with this information, the acquirer renegotiated the purchase price, ultimately saving $25 million—thanks to 15 customer interviews.
Case #2: Customer Interviews Averted a Disaster
The Context: A custom flooring manufacturer with a strong market position and impressive financials caught the attention of a top NYC private equity firm. On paper, it was a dream acquisition—double-digit growth, proprietary technology, and 24% EBITDA margins.
The Work: T4 conducted 40 dealer interviews across the US to confirm the company’s claims. The results were shocking: customers reported chronic delivery delays and poor service, all stemming from a failed SAP implementation.
Their Net Promoter Score (NPS) registered at a -56, and 25% of dealers were shifting to competitors.
The Result: The PE firm quickly realized that this company’s growth prospects were in jeopardy. The deal was called off.
Case #3: A Good Company Tarnished by Association
The Context: A visualization software company had an impressive product and loyal customer base. Their NPS score came in at 72—excellent by any measure.
The Work: However, interviews with channel partners revealed a looming threat: the ERP company the software was integrated with was losing market share and developing its own visualization capabilities, threatening the future of the product.
Despite the company’s strong track record, it faced significant risks within 2-3 years.
The Result: The PE firm chose to walk away, knowing that a shift in the ERP market would erode the software company’s value over time.
Why Private Equity Firms Choose T4 for Customer Due Diligence
- We Mitigate Risk
1 in 11 deals we evaluate uncovers red flags that change a valuation or stop an acquisition in its tracks—whether it’s a potential loss of key customers, a failing product, ethical concerns, or emergent pricing pressures.
- Our Diligence Work Delivers Value Beyond the Deal
Unlike Quality of Earnings or legal due diligence, customer insights don’t expire after closing. They provide a roadmap for post-acquisition success, replacing months of guesswork with immediate, actionable insights.
- We Go Deeper Than Commercial Due Diligence
While commercial diligence evaluates market size, trends, and competition, it barely scratches the surface of customer relationships. Our customer interviews, however, reveal what’s driving loyalty, where the cracks are forming, and predicts growth potential at the account level.
- Turnkey Execution
We handle everything—quickly and efficiently.
- Expert Interviewing
We are professionals – we know how to craft a thoughtful set of questions and use trained interviewers skilled at asking probing questions to deliver insightful results.
- Actionable Reporting
Both you and the target get a concise, executive-level analysis that turns customer feedback into actionable strategic insights.
How It Works
✔ Customer interviews completed by our expert, in-house team of researchers
✔ Full study completed in just 4 weeks (preliminary results available in as little as 10 days)
✔ 20-25 question format, 20-25 minute interviews
✔ Confidential approach—positioned as a customer satisfaction survey
✔ Includes all planning, project administration, and bi-weekly management updates
✔ 15+ languages available
Deliverables
✔ Comprehensive management report + two management presentations
✔ Complete transcripts from each interview
✔ Findings, recommendations, and transcripts delivered to target leadership upon deal closure
Without strong customer relationships, an acquisition loses its foundation.
When the deal is on the line, call T4.
