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

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