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Mentor
Well they themselves don’t kill the deal, but if we hire them and ask critical questions xyz, are there red flags, then yes they will come back and be sober to reality if they find those red flags. Won’t spin it positively or negatively, will just be objective and fact based
Fair point. The interests aren't quite as aligned in that moment though I'd expect the partners' reputation are fairly sustained and so they wouldn't want to go around losing credibility by recommending suspect deals.
We've typically known certain groups to be more skeptical/have a higher bar for "yes" than others
I know this is Bain specific but at McK, I have gotten to the end of a DD and we’ve submitted our work to the client knowing it would kill the deal. As B2 said, we probably do more double checking in those situations than the opposite (though it should be the same either way I guess).
I was doing this for a F500 once and at the mid-point checkin we had a CEO say, “wow you guys may have just killed this deal” because our initial analysis showed a gloomy picture.
Isn’t the point of DD to help kill deals that don’t make sense??
If you want to work in the industry long term
They have killed deals yes
I was on a DD where the client killed the deal because of our analysis…There’s really no USP of the target…
This isn’t even a Bain / MBB/ singular firm thing. The one, count it, one DD I was on we ended up nuking the deal for some p obvious reasons.
Yep. LEK is a sell side DD shop - heard multiple partners refer to them as having a “rosey viewpoint”
Bain Consulting or bain Capital?
Consulting, curious to see how they work vs us