An institutional investor was able to pass with conviction on a $100M enterprise software investment – despite a short 3 week deadline and immense competitive pressure – by utilizing Termina to detect hidden weakness in underlying engagement within seemingly strong contracts.
In early 2024, an institutional investor faced an urgent need to augment their due diligence process with the ability to identify hidden issues with growth, without jeopardizing deal timelines.
This challenge came to a head during a particularly time-sensitive deal with significant attention. The investor, unwilling to sacrifice the quality of their diligence, engaged Termina to generate a scan of the target company noting high urgency. The deal in question was competitive with bids due within 3 weeks.
Within an hour of being notified about the target company, Termina coordinated with the requesting deal partner to collect and ingest financial / transactional data, and to get a sense for the top concerns the deal partner had about the target.
As a late-stage enterprise software company, the volume of transaction data requiring analysis was significant, surpassing 120M transactions.
The investor utilized Termina to scan the transactions, with results delivered the next day.
The scan detected a significant discrepancy between the accelerating revenue growth the company was pitching, and an alarming drop in growth across engagement. Additionally, the scan detected that engagement was highly concentrated in a small number of customers further amplifying the potential risk.
The investor was able to understand the quality of growth of the target company within 24 hours and detect several material issues.
With the time saved, the team was able to focus on other deals, including winning another high priority deal that was active at the time.
