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Lumerai PE Diligence Framework™
What governance liabilities could affect the deal?
When to use LPDF
Surface AI-era technology liabilities that can undermine a value creation plan. LPDF examines how AI, data, ownership, workflows, and vendor dependencies translate into remediation costs and execution constraints.
Who it helps
Private equity deal teams, operating partners, investment committees, fund technology leaders, and portfolio CEOs and CIOs.
What we evaluate
- Governance Debt Load — ungoverned AI activity, ownership gaps, and oversight.
- Data Foundation — quality, lineage, KPI definitions, and pipeline accountability.
- AI Portfolio Reality — sanctioned and shadow AI, provenance, and portability.
- Value Creation Alignment — feasibility of the capabilities assumed in the deal model.
- Workflow Integration — whether AI changes production decisions and processes.
- Talent and Ownership — retention, technical depth, documentation, and accountability.
- Vendor and Contract Risk — dependencies, IP, data rights, pricing, and change-of-control terms.
- Remediation Cost — people, tools, effort, sequencing, and timeline.
Two engagement tiers
- Quick Look — typically 3–5 business days: targeted interviews and document review, preliminary score, high-level cost range, and top diligence red flags.
- Deep Dive — typically 2–3 weeks: evidence-based pillar assessment, quantified remediation plan, value creation impact, and a first-100-days roadmap. Scope and timing depend on access to evidence.
How decisions are interpreted
The Governance Debt Score ranges from 0–100: a higher score indicates stronger capability and less governance debt. Severity bands are Minimal (85–100), Manageable (70–84), Material (55–69), Severe (40–54), and Critical (below 40). The separate Governance Debt Estimate expresses remediation costs in dollars as a range, with a central estimate and confidence rating.
What you receive
- Governance Debt Score with pillar-level findings
- Remediation estimate separating directly quantified and indicative costs
- Calculation basis and evidence confidence ratings
- Impact on the value creation plan and negotiation considerations
- First-100-days remediation roadmap and investment committee summary
The estimate is a diligence input based on available evidence, not a warranty or fixed liability figure. Actual costs depend on post-close execution decisions. Findings inform deal judgment rather than automatically determine whether to proceed.
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