PE Commercial Due Diligence

Commercial Due Diligence for Private Equity

Purpose-built Commercial Viability Assessments for PE and growth equity firms evaluating financial services technology investments.

Structured scoring. Sourced data. Consulting-grade deliverables. Built for deal timelines.

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What Is the Commercial Conviction Gap?

The Commercial Conviction Gap is the disconnect between how PE firms create value and how they evaluate targets. Revenue growth now drives more than 60% of PE value creation (McKinsey Private Equity Practice, 2023), yet commercial execution remains the least rigorously assessed dimension of diligence.

Funds invest based on financial models and technical architecture reviews, then discover post-close that the commercial engine — go-to-market motion, competitive positioning, customer economics — cannot support the growth thesis. The problem is structural: most commercial diligence is either outsourced to generalist consultants who lack domain expertise or conducted informally by deal teams without a structured framework.

Financial services technology companies — with their complex buyer personas, regulatory environments, and competitive dynamics — require specialized commercial assessment.

72%

of PE-backed companies cite commercial execution failure as their primary value gap.

Bain & Company, 2024

44%

of PE leaders say go-to-market diligence is the biggest hole in their evaluation process.

Blue Ridge Partners, 2023

What Is a Commercial Viability Assessment?

A Commercial Viability Assessment (CVA) is a structured, scored evaluation of a company's commercial readiness across eight weighted dimensions, designed specifically for PE and growth equity firms evaluating financial services technology investments. Gray Carroll's CVA framework produces a composite score on a 1–5 scale that quantifies commercial viability and surfaces both strengths and risks.

Unlike generalist commercial diligence, the CVA is calibrated specifically for finserv technology companies — WealthTech, Investment Management, Banking Technology, RegTech, Cybersecurity for FIs, and Alternative Investment platforms.

Every CVA delivers five core outputs:

Composite Score

Weighted 1–5 score across 8 workstreams with color-coded risk thresholds

Evidence-Based Findings

Every claim sourced from public data, customer intelligence, and digital signals

Risk Assessment

Prioritized risk matrix with severity ratings and mitigation recommendations

Voice of Customer

Structured interviews across power users, recent wins, churns, and competitive losses

Consulting-Grade Deliverable — PE-ready deck with SCQA narrative structure, action titles, and sourced data. Designed for direct use in investment committee presentations.

How Does the CVA Methodology Work?

The CVA methodology evaluates targets across eight weighted workstreams, each scored 1–5 against PE investment criteria. Each workstream addresses a specific dimension of commercial viability, and the weights reflect relative importance to fund returns based on research across PE value creation patterns.

15%

Market Position & Opportunity

TAM sizing, growth trajectory, competitive density, market timing

15%

Competitive Moat & Differentiation

Defensibility analysis, switching costs, feature parity, technical barriers

15%

GTM & AI Readiness

Sales motion efficiency, channel mix, AI integration maturity, scalability

20%

Customer Economics

NRR, churn, CAC payback, LTV:CAC ratio, expansion revenue, concentration risk

5%

Digital Customer Intelligence

G2/Gartner presence, review sentiment, digital footprint, brand authority

10%

Voice of Customer

12-interview structured program across 4 cohorts with scored synthesis

10%

Organization & Leadership

Executive depth, GTM leadership, bench strength, culture signals

10%

Pricing Power & Flexibility

Pricing model assessment, expansion levers, competitive pricing position

Scoring Scale
3.5–5.0 Strong
2.5–3.4 Moderate
1.0–2.4 Weak

The composite score is a weighted average across all eight workstreams. Scores are intentionally conservative — PE firms respect caution over optimism.

How Much Does a CVA Cost?

Gray Carroll offers three CVA engagement tiers, calibrated to deal timeline, diligence depth, and investment stage. Each tier produces a consulting-grade deliverable with structured scoring and sourced findings.

Tier 1
CVA Express
$15K–$25K
5–7 business days
  • Desk research across all 8 workstreams
  • Digital customer intelligence scan
  • Composite score with risk flags
  • Consulting-grade deliverable deck
  • Executive briefing call
Best For

Early screening, deal pipeline triage, initial IC review

Tier 2
CVA Standard
$50K–$75K
2–3 weeks
  • Everything in Express, plus:
  • 6-interview VoC program (2 cohorts)
  • Competitive deep-dive with feature matrices
  • Customer economics modeling
  • Detailed risk mitigation roadmap
Best For

Active diligence, LOI stage, pre-IC decisions requiring customer validation

Tier 3
CVA + Strategic Advisory
$75K–$100K+
3–4 weeks
  • Everything in Standard, plus:
  • Full 12-interview VoC (4 cohorts)
  • 100-day commercial acceleration plan
  • GTM optimization roadmap
  • Ongoing advisory retainer option
Best For

Final diligence, platform build-outs, growth equity with operating model thesis

Why Choose Gray Carroll for Commercial Due Diligence?

Gray Carroll Consulting provides specialized commercial due diligence for PE firms evaluating financial services technology companies. The firm is led by Brian Carroll, who brings 20+ years of commercial leadership across finserv technology — including roles at Nasdaq and DefenseStorm — spanning WealthTech, Investment Management, Banking Technology, RegTech, and Cybersecurity for FIs.

Domain Expertise

Domain, Not Generalist

Finserv-only focus means fluency in the buyer personas, competitive dynamics, and regulatory context PE targets operate in. No learning curve on sector fundamentals.

Practitioner Background

Operator, Not Academic

20 years building GTM functions inside the companies PE firms evaluate — product marketing, competitive intelligence, positioning, pricing — not observing from the outside.

WHAT SETS US APART

Speed Without Sacrifice

AI-augmented research and analysis delivers Express-tier CVAs in 5–7 days without cutting analytical corners.

PE-Calibrated Output

Deliverables built to McKinsey/Bain/BCG consulting standards: action titles, sourced data, SCQA narrative structure, conservative scoring.

Finserv Segments Covered
WealthTech Investment Management TAMP Platforms Alternative Investments Banking Technology RegTech Cybersecurity for FIs Asset Allocators Fund Administration

Frequently Asked Questions

What is a Commercial Viability Assessment (CVA)?

A CVA is a structured, scored evaluation of a company's commercial readiness across eight weighted dimensions — from market positioning and competitive moat to customer economics and organizational depth. It produces a composite score on a 1–5 scale with risk-flagged findings and recommendations, designed specifically for PE and growth equity investment decisions.

How long does a CVA take to complete?

A CVA Express engagement takes 5–7 business days from kickoff to deliverable. The Standard tier takes 2–3 weeks and includes Voice of Customer interviews. The Strategic Advisory tier extends to 3–4 weeks with a post-close acceleration plan.

What types of companies does the CVA cover?

The CVA methodology is calibrated specifically for financial services technology companies, including WealthTech, Investment Management platforms, Banking Technology, RegTech, Cybersecurity for FIs, TAMP platforms, Alternative Investment data platforms, and Fund Administration technology.

How is the CVA different from traditional commercial diligence?

Traditional commercial diligence is typically generalist — the same consultant assessing a healthcare SaaS company also evaluates a finserv platform. The CVA is domain-native, built by someone with 20+ years inside finserv technology. It uses a structured scoring methodology with weighted workstreams rather than qualitative narrative, and delivers a quantified composite score that maps directly to PE investment criteria.

What does the CVA deliverable look like?

The deliverable is a consulting-grade PowerPoint deck following McKinsey/BCG/Bain presentation standards — action titles (not label titles), sourced data on every slide, SCQA narrative structure, color-coded scoring, risk assessment matrices, and recommended next steps. It's designed for direct use in investment committee presentations.

What is the Voice of Customer (VoC) component?

The VoC program is a structured interview series across four customer cohorts: power users, recent wins, churns, and competitive losses. The Standard tier includes 6 interviews across 2 cohorts; the Strategic Advisory tier includes 12 interviews across all 4 cohorts. Findings are scored and synthesized into the overall CVA.

Ready to Close the Commercial Conviction Gap?

Whether you're screening a pipeline target or deep in diligence, a CVA gives you the commercial clarity to invest with confidence.

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