Case Study 6

ECI Partners - Project 2 (June 24) - Due Diligence

Problem

ECI Partners, a mid-market PE fund, asked me to conduct a Commercial and AI Due Diligence on a business in the Accounting Software Sector with approximate revenues of £8m. Specifically the questions to address were:

1. What can AI / Generative AI do in the sector?

2. To what extent will the Target be disrupted?

3. How will the Target be disrupted?

4. AI/ML Risks & Opportunities for the Target

5. Is data a defensive MOAT?

6. Consider what makes the Target special / unique and the defensiveness of this as it relates to data/AI

7. Considerations for competitors

Action

This was a two week strategy project during which I conducted the following activities:

  1. Review IM / CDD

  2. Review further relevant commercial and strategic documentation from the target business

  3. Desk research - assisted by safe use of AI tools

  4. SME interviews in the sector and my network

Impact

The output was a 15 page strategy document which raised three Amber flags for discussion.

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7. Digitalvation (Sep 24) - Business Model & GTM Strategy

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5. VeritIQ (May 24) - Investment Memorandum