Private equity due diligence proposal: Free template

Customize this free private equity due diligence proposal with Cobrief

Open this free private equity due diligence proposal in Cobrief and start editing it instantly using AI. You can adjust the tone, structure, and content based on the target company, investment thesis, and diligence timeline. You can also use AI to review your draft — spot gaps, tighten language, and improve clarity before sending.

Once you're done, send, download, or save the proposal in one click — no formatting or setup required.

This template is fully customizable and built for real-world use — ideal for supporting PE firms during pre-close diligence across commercial, financial, or operational workstreams. Whether you're working on a platform acquisition, add-on deal, or buyout review, this version gives you a structured head start and removes the guesswork.

What is a private equity due diligence proposal?

A private equity due diligence proposal is a document that outlines the scope, approach, and timeline for conducting diligence on a target company prior to acquisition. It’s used by diligence providers — from commercial consultants to CFO advisors — to define what work will be done, what outputs will be delivered, and how insights will support deal decisions.

Typically sent after an introductory call or NDA execution, this proposal formalizes the engagement — covering everything from discovery interviews to financial model testing and red flag identification.

A strong diligence proposal helps you:

• Show you understand the target, investment thesis, and likely risks
• Break down workstreams and deliverables clearly
• Set expectations on timing, reporting cadence, and access needs
• Build confidence that you can deliver sharp, fast insights under time pressure

Use this proposal to turn a loose conversation into a well-scoped, decision-ready diligence engagement.

Why use Cobrief to edit your proposal

Cobrief lets you turn your diligence scope into a polished proposal — with AI support to streamline edits, tighten language, and clarify impact.

• Edit the proposal directly in your browser: No doc formatting delays — just write and send
• Rewrite sections with AI: Refine tone, simplify technical language, or tailor content to sponsor focus
• Run a one-click AI review: Identify weak phrasing or unclear timelines
• Apply AI suggestions instantly: Review suggestions or apply all edits in one click
• Share or export instantly: Send the proposal as a clean PDF or DOCX with no extra setup

Perfect for deal teams that need fast, professional support — without administrative drag.

When to use this proposal

This private equity due diligence proposal works well in scenarios like:

• Supporting a sponsor on a new platform acquisition
• Providing commercial diligence on an add-on target in a roll-up
• Running financial review and model testing before IC approval
• Preparing a red flag report under exclusivity
• Working alongside legal and technical teams as part of full-scope diligence

Use this when clarity, speed, and professionalism are essential to win the engagement and guide the deal team.

What to include in a private equity due diligence proposal

This template helps PE clients understand what you’ll do, how it maps to their thesis, and how insights will be delivered on time. Here’s the structure:

• Executive summary: Frame the engagement — e.g., “We’ll support your diligence of [TargetCo] through commercial interviews, market sizing, customer analysis, and competitive review to inform investment decision-making by [date].”
• Scope of services: Break down the workstreams — e.g., commercial diligence (market, customers, pricing), financial review (historicals, projections, working capital), operational diligence (systems, org, scalability).
• Methodology and approach: Summarize how you’ll gather and validate data — e.g., expert calls, customer interviews, desk research, model walkthroughs. Note key deliverables (slide deck, summary report, risk map).
• Timeline: Provide a day-by-day or week-by-week breakdown — e.g., Week 1: kickoff + materials; Week 2: interviews + model review; Week 3: insights + report delivery.
• Fees: Specify whether the engagement is fixed-fee, hourly, or milestone-based. Note any rush fees or phase-two optionality (e.g., post-close integration planning).
• Terms and expectations: Clarify access needs (data room, management, customer lists), working style, and update cadence. Include limitations on scope or dependencies.
• Next steps: End with a clear CTA — “Reply to confirm,” “Send signed proposal to begin,” or “Schedule kickoff call to align on diligence priorities.”

How to write an effective private equity due diligence proposal

Speed and confidence matter most here. Your proposal should reflect both. Here’s how to improve it:

• Mirror the sponsor’s thesis language: Use their framing to show you understand what they’re testing
• Don’t oversell — be sharp: Focus on relevance, speed, and reliability, not fluff
• Be brutally clear on scope: Most diligence fails when expectations aren’t aligned — solve that up front
• Include delivery format and cadence: PE teams want to know when and how they’ll get the insights
• Avoid boilerplate: Every deal is different — tailor your scope and tone to this one
• End with frictionless action: Don’t slow the process — make the next step obvious

Frequently asked questions (FAQs)

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This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.