Beyond Diligence: Why Post-Close Execution Makes or Breaks Value Creation
In private equity, diligence gets a lot of attention. And it should! Technical due diligence, financial review, and commercial analysis are essential for identifying risks before a deal closes.
But diligence alone doesn’t create value. Execution does.
Some of the biggest risks and opportunities in M&A don’t become visible until after the deal is signed. At that point, operating partners, CEOs, and CTOs of portfolio companies are responsible for delivering on the investment thesis. The gap between what’s uncovered in the data room and what surfaces during execution is where deals either create outsized returns or stall.
Where Post-Close Risk Emerges
In our work with portfolio companies, we consistently see three patterns surface post-close:
GTM and product misalignment. When sales and product aren’t on the same page, revenue goals slip. Promises made in the market don’t match product capabilities, frustrating customers and slowing growth.
Technical debt slows delivery. Even well-run engineering teams can be sitting on brittle architecture or deferred maintenance. Once the roadmap is stressed by new growth targets, progress stalls. And budget drains into remediation instead of innovation.
Talent gaps become visible. Scaling an engineering organization requires more than adding headcount. Without the right leadership, processes, and culture, growth exposes weaknesses that diligence checklists rarely catch.
None of these issues show up clearly in a data room. And most diligence processes simply aren’t designed to uncover them in time.
Why Post-Close Planning Matters
This isn’t a knock on diligence. It’s a reminder that diligence is only the starting point. Protecting and expanding value requires post-close execution planning that’s as rigorous as pre-close analysis.
For investors and executives, this means shifting focus to questions like:
How aligned are GTM and product strategies, and what will it take to close gaps quickly?
What technical debt could impact roadmap delivery, and how should remediation be prioritized?
Where are the organizational blind spots - leadership, process, or talent - that could slow scaling?
How do cloud infrastructure and cloud costs factor into efficiency and margin expansion?
Kickdrum’s Role in Post-Close Success
At Kickdrum, we bridge the gap between diligence and execution. Our team of senior engineering leaders doesn’t just identify risks during diligence; we help portfolio companies tackle them head-on post-close.
That can mean aligning GTM and product through clear roadmapping, embedding engineering leaders to accelerate delivery, or modernizing software development practices to scale more efficiently. We also help companies reduce cloud costs, optimize cloud infrastructure, and make targeted use of software outsourcing to fill gaps without slowing momentum.
By combining diligence insights with hands-on execution support, we enable operating partners and executives to turn hidden risks into value creation opportunities.
The Bottom Line
Private equity firms know diligence is essential. But in today’s environment of tighter capital and higher expectations, execution is where enterprise value is truly won or lost. By preparing for post-close risks and moving quickly to address them, investors and portfolio companies can transform diligence findings into durable growth.
