Assessing the political risk of private equity deals in geopolitically charged territory
Sector: Private Equity

Challenge: Completing due diligence to understand the risk of buying a business with data centers in Israel at a turbulent time for the country.

What we delivered: A complete breakdown of the client’s risk exposure and key concerns, with informed recommendations on the likelihood and impact of various political and security outcomes.

Context and results: With violent events in Israel making headlines and concerning investors, our client – a private equity firm – needed to make an immediate investment decision about a target with data centers in the country. 

PRISM analyzed the immediate security risks and their potential impact on the target business. We also reviewed wider political factors on the target in light of the technology and cybersecurity risk inherent to its sector, in addition to its government customers and their specific political risk exposure.

Our researched response to these key due diligence questions allowed our client to level-set, examine the risks of its purchase in order of concern, and make a fully informed investment decision.