Why Due Diligence is Critical in the Reshaping of Global Supply Chains

Dealmaking is back on the table for private equity firms focused on Asia. After the biggest global health emergency in more than a century put an almost complete stop to in-person site visits and meetings, executives are once again seeking opportunities where they can see potential for transformation and profitable disposal in the future.

According to research from McKinsey, the global economic recovery from Covid has rapidly increased the demand for logistics and distribution services, which has far outstripped supply. This has caused PE behavior to shift. Its due diligence of prospective investments has increasingly focused on companies that rely on supply chain resilience.

Getting products from design and manufacturing and into markets along secure distribution routes will always be a key requirement for companies no matter what economic and geopolitical storms they may have to adjust to. This focus on distribution is heightening the interest in deals for companies that make supply chains work.