Your Biggest Deal Risk is Unquantified
The Quality of Execution (QoX™) Audit for Private Equity Due Diligence
RELYING ON "GUT FEEL"?
Your diligence on the numbers is precise (QoE). We bring the same rigor to assessing the leadership team's ability to execute your plan (QoX)
LACKING "AIR COVER"?
Defend your investment thesis to the IC with objective, third-party data, not just subjective conviction.
WASTING TIME POST-CLOSE?
Stop spending the first year diagnosing people problems. Start executing your value creation plan on Day 1.
Stop Guessing. Start Building. Our human capital diligence platform, trained on 6,200 deals, replaces investment guesswork with data-driven certainty.
Trusted By Leading Private Equity Firms
From Gut Feel to Hard Data in 7 Business Days
ASSESS
BENCHMARK
DELIVER
Confidential structured interviews with Leadership and other Team Members using our PE-validated Alpha Mosaic™ methodology.
We analyze the results against our proprietary dataset of 6,200 past deals across all industries.
We present a one-page dashboard of deal risks, economics at stake, and an actionable 100-Day Human Capital Playbook
Clarity for the IC. A Playbook for Day 1.
You get a concise, data-driven dashboard designed for quick decisions and clear roadmap to accelerate value creation + a 20 page detailed report.
QoX™ Deal-Level KPIs
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HC Risk Score: This is the headline metric. It distills all underlying HC data into a single, easy-to-understand score and letter grade, immediately flagging the overall level of risk.
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Comparable Deals: This metric shows the size of the comparable deal set, from the overall dataset of 6,200, for the benchmark analysis.
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Predicted MOIC (Baseline): This forecasts the deal's financial return (Multiple on Invested Capital) if the target's human capital issues are left unaddressed. It establishes the "cost of doing nothing."
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Predicted MOIC (with Levers): This presents the financial upside. It models the improved MOIC that can be achieved by implementing recommended HC interventions, directly tying people-focused improvements to deal returns.
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HC Value Opportunity: This is the "prize." It translates the MOIC improvement into a specific, projected dollar amount, quantifying the value trapped within the organization's human capital.
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Human Capital ROI: This metric provides a clear return on investment, comparing the dollar value of the HC opportunity against the cost of the initiatives required to capture it.
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Key Predictive Risk Flag: This serves as a systemic health check, alerting the deal team if specific risks are combining in dangerous ways that could threaten the entire investment thesis.
Pre-Acquisition Human Capital Risk Diligence
This section provides a scorecard that assesses the target company's health across 8 critical Human Capital (HC) domains. It quickly highlights specific areas of operational weakness and potential risk. It helps an acquirer understand where to focus their attention and resources during the integration phase post-acquisition. The lowest-scoring areas represent the most urgent priorities for improvement.
NextArc-Adjusted Human Capital Debt
This section quantifies the findings from the risk scorecard into a single, impactful financial figure. This figure represents the sum of the estimated costs required to fix the problems and mitigate the risks identified in the HC Risk Score Breakdown. It is, in essence, the investment needed to bring the target company's people operations up to an acceptable standard. In an M&A transaction, this figure can be used to adjust the valuation or purchase price of the target company. It provides an immediate, data-driven estimate for the post-acquisition integration budget. The new owner knows how much capital they should expect to allocate to remediation efforts, preventing unforeseen costs down the line.
Your Day 1 Value Creation Playbook
Instantly convert diligence findings into a prioritized action plan. This playbook provides a step-by-step guide with fully-costed solutions, each tied directly to its potential impact on EBITDA. It's your clear roadmap to mitigate risk and create tangible value from the moment you take ownership.
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Immediate Action: It allows the new ownership to hit the ground running on Day 1, addressing the most critical human capital issues without delay.
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Strategic Prioritization: The actions are ordered by urgency and impact, ensuring that the most significant risks and value-creation opportunities are tackled first. For instance, addressing a "Founder Key Leader Assessment" issue is prioritized over auditing the payroll system.
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Critical Red Flags: The plan can also highlight complex issues. Seeing "No action required" next to the lowest score ("Culture Engagement") acts as a critical flag. It signals that the problem may be too severe for a simple budgeted fix and requires a more profound strategic intervention or further investigation before any capital is deployed.
The NextArc Leadership Solutions Advantage
ECLUSIVE PE FOCUS
Our methodology is built for the private equity ecosystem, comparing your deal to other comparable deals in our curated dataset of 6,200 deals refreshed quarterly.
THE HIGHEST ROI IN DILIGENCE
Our audit represents just 1-3% of a typical diligence budget—a marginal cost to de-risk your greatest variable.
30+ YEARS OF EXPERIENCE
Our practice is led by a veteran who has assessed over 36,000 leaders and leadership teams and understands the rigor your world demands.
Turning Leadership and HR Platform Risks into Execution Velocity
Our data-driven audits provide the critical insights needed for confident decision-making. But our partnership doesn't stop at the report. We work alongside our clients to translate findings into actionable strategies that protect investments and accelerate value creation. Here are a few examples of how we've helped leading firms turn human capital risks into strategic advantages.
B2B SaaS
Finding: The Leadership Audit uncovered deep misalignment between the CEO and CTO on the product roadmap.
Impact: NextArc facilitated a senior team session to resolve the conflict and realign the strategy. Through follow-on executive coaching, NextArc helped secure the CTO’s commitment, preventing an estimated 9-month product delay and preserving roughly $1.5M in recruiting costs and lost productivity.
Manufacturing
Finding: The HR Maturity Report flagged the "Legal & Compliance" pillar as critically low due to widespread misclassification of contractors.
Impact: Armed with NextArc's objective data, the firm successfully negotiated a $2M escrow set-aside during final diligence to cover potential back taxes and penalties, directly protecting the investment from a post-close financial shock.
FinTech
Finding: The investment thesis required aggressive revenue growth, but the Leadership Audit of the CRO revealed a critical weakness in data-driven sales management.
Impact: Using NextArc's Human Equity Valuation process, the 100-Day Playbook identified the need for the pivotal talent add of Head of Sales Operations. This accelerated the value creation plan by 10 months, contributing an estimated $5M to the exit valuation.
Healthcare Services
Finding: The initial HR audit revealed a 38% turnover rate among high-performing clinical staff. NextArc’s Culture Performance Index (CPI) was then deployed, diagnosing the root causes as managerial “decision sclerosis” and a lack of clear career pathing.
Impact: The findings led to a redesigned onboarding and professional development program, reducing clinical turnover by 28% in the first year and saving an estimated $780,000 annually.
Consumer Package Goods
Finding: The firm was set to replace the Head of Marketing. Our Leadership Audit showed she had exceptional "Vision & Strategy" scores but was being stifled by the current CEO.
Impact: Instead of a costly search, the firm engaged NextArc for targeted executive coaching with the CEO. This saved over $350,000 in search fees and empowered the existing leader to launch a new product line that generated $4M in its first year.
Medical Devices
Finding: The growth plan required EU market expansion, but the Leadership Audit confirmed no one on the executive team had the requisite experience and expertise.
Impact: NextArc's Human Equity Valuation process pinpointed the need for a "VP of International Expansion" as a pivotal role requiring A+ talent. Starting the search pre-close shaved 13 months off the expansion timeline, increasing the exit valuation by an estimated $18M.