Private Equity Firm Misses Key Due Diligence Risk
Private Equity firm invested $100M into a company with major risks
The Situation
- Private Equity firm committed to invest into high-growth Software Company where its key asset was its software code.
- Conventional due diligence detected no material risks.
The Client
Financial Services Provider
Outcome
- EverEdge was approached to conduct a subsequent audit of the software code, which revealed extensive use of open source code software.
- This led to the identification of substantial licensing issues and cyber liability in the core asset.
Result
Private Equity firm invested $100M into a company with major risks