Private equity consumer deals die on brand decay, channel power, trade spend, inventory that will not clear, retailer concentration, and seasonal working capital — not on a clean EBITDA bridge alone. Use this guide to screen retail, CPG, and consumer brand targets before LOI and run a sharper confirmatory workstream after it.
Consumer PE due diligence is the structured review of a retail, consumer packaged goods (CPG), brand platform, e-commerce, or consumer services business before a buyout, carve-out, or platform add-on. Buyers are underwriting demand durability, channel access, and inventory cash — not just contracts and code.
That changes the kill criteria. A software company can reprice churn. A consumer company with a brand propped up by unsustainable promotions, a single big-box retailer that can delist, or inventory that ages into markdowns can break the model after exclusivity. Public kill screens and structured first-pass packs protect process budget before store audits, brand research, and specialist stacks start.
Category growth, brand equity trends, pricing power, SKU/assortment health, competitor share, and whether growth is real demand or promo-led pull-forward.
Mix of wholesale, retail doors, DTC, marketplaces; retailer concentration; slotting/terms; delist risk; Amazon/marketplace dependency.
List price vs net selling price, trade promotions, co-op, returns allowances, and whether EBITDA survives honest promo normalization.
Weeks of supply, aging, fashion/seasonal obsolescence, private-label vs branded mix, supplier concentration, lead times, quality escapes.
Contribution by channel, store or SKU profitability, DTC CAC/LTV, seasonal WC peaks, inventory turns, AR/AP with major retailers.
Recalls, product liability, IP/trademarks, regulatory claims (labeling, FTC, CPSC), key brand/category leaders, and labor model risk.
| Metric | What good looks like (context-dependent) | Red flag |
|---|---|---|
| Brand / like-for-like growth | Growth without rising promo intensity | Volume only when discounts spike |
| Gross margin after trade | Stable net margin by channel | Trade spend rising faster than sales |
| Channel mix | Diversified; DTC/retailer balance known | One retailer or marketplace dominates |
| Inventory weeks / aging | Weeks match sell-through; aging clean | Aged stock needs deep markdowns |
| Retailer concentration | Top accounts diversified; terms known | Top account >25-30% with weak terms |
| DTC CAC / LTV (if relevant) | Payback within policy; cohorts stable | CAC up, retention down, promo dependency |
| Returns / chargebacks | Stable rates with root-cause tracking | Rising returns eating contribution |
| WC seasonality | Peak inventory funded and modeled | Close timed at peak WC without peg truth |
If the CIM shows EBITDA without channel contribution, trade-spend bridge, or inventory aging truth, treat the number as marketing until proven. PE models that price on headline margin without brand and channel risk overpay systematically.
Traditional consumer multi-workstream diligence often runs $75K-$250K+ and 4-10 weeks. A structured first-pass public-info pack is $49 per target — or $129 for a 3-Pack shortlist with a comparison PDF.
Order a consumer PE pack · $39.20 launch → See sample PDFFirst-pass list for buyout screening. Severity tags: Deal-Killer, High, Watch.
| Signal | Severity | Why it matters |
|---|---|---|
| Volume only when promo intensity rises | Deal-Killer | Brand equity is rented, not owned |
| Top retailer >30% with weak terms | Deal-Killer | One delist breaks the model |
| Aged inventory not reserved | Deal-Killer | Equity check funds markdowns |
| WC balloon at seasonal peak close | Deal-Killer | Leverage and equity break |
| Open recall / product liability | Deal-Killer | Indefinite liability and brand damage |
| Trade spend rising faster than sales | High | Net margin collapse ahead |
| DTC CAC up, cohorts decaying | High | Growth channel is unprofitable |
| EBITDA only via aggressive add-backs | High | Multiple paid on non-cash earnings |
| Approach | Typical cost | Typical time | Best use |
|---|---|---|---|
| Public kill screen + structured pack | $49 / target ($129 3-Pack + comparison PDF) | Minutes to hours | Pre-LOI triage, shortlist ranking |
| Boutique commercial + brand memo | $25K-$100K | 2-4 weeks | Serious process before exclusivity |
| Full QoE + commercial + brand stack | $75K-$250K+ | 4-10 weeks | Post-LOI confirmatory |
Use cheap screens to decide which names deserve store audits, retailer calls, and expensive specialists. Do not reverse the order.
dodilligence delivers institutional-style public-information diligence PDFs for named consumer, retail, and CPG targets. Use them to:
Related: Sample report · Commercial DD guide · Financial DD guide · Operational DD guide · PE teams · Valuation guide
It is the structured review of a retail, consumer brand, CPG, e-commerce, or consumer services company before a private equity buyout, carve-out, or add-on. It covers brand, channels, trade spend, inventory, unit economics, working capital, product risk, and people.
Like-for-like or brand growth quality, gross margin after trade spend, channel mix, inventory weeks and aging, retailer concentration, DTC unit economics if material, returns, and seasonal working capital. If those do not reconcile, stop trusting the CIM narrative.
Public screening: hours to days. Full confirmatory stacks: often 4-10 weeks after LOI.
Promo-propped volume, extreme retailer concentration, aged inventory, unsustainable trade spend, product liability/recalls, and working capital that balloons at close.
Specialist stacks often $75K-$250K+. First-pass public-info packs start at $49 per target; 3-Pack shortlist with comparison PDF is $129.
Light public commercial and regulatory signals: yes. Deep consumer research and store audits: usually after LOI access.
It overweights brand durability, channel power, promotions, inventory, and retailer terms versus recurring revenue and tech debt.
No. It prioritizes questions and kills weak names early. Specialists still run confirmatory work on finalists.
Each target has a free 1-page brief and a full 20-page PDF diligence report ready to order. Pick a name to start screening.
Institutional PDF pack from public sources. $49/report · $129 3-Pack with comparison PDF · dual legal acceptance at checkout.
Order report → Order 3-Pack → Sample PDFScreening frameworks across every active deal sector. Each guide maps to buyable company reports.