Skydivers know that there is a risk their parachute won’t open. Police officers know their daily jobs come with the inherent risk of danger. And private equity firms know there is a risk they won’t realize the expected return on investment in any given deal thesis – but even with that understanding, and the standard due diligence a firm will perform prior to a deal, hidden IT risks may lie within an investment company.
These five technology-related risks can put a private equity firm in a precarious position when it comes to realizing a deal thesis or accurately assessing a portfolio company’s return on investment.
1. IT security vulnerabilities
Many private equity firms know to perform a financial assessment of a potential investment company. Yet not every company thinks to assess security vulnerabilities within the same company – even though the financial implications of a cyber ..
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