A private equity firm targeting a €1.7 billion acquisition in the manufacturing sector encountered significant uncertainty around the target company’s creditworthiness, especially given disparate subsidiary risks and volatile market conditions. The firm was concerned that unfavourable terms or unforeseen portfolio risks would erode deal value post-closing. We entered at the pre-acquisition due diligence stage, scoring each of the target’s fifteen subsidiaries for creditworthiness using a proprietary financial assessment model. We examined not just historical data but also layered in supply chain dependencies and macroeconomic exposures to simulate possible downturns. Drawing on this analysis, Canali Partners recommended scenario-based covenant structures that protected the client’s interests even under revenue contractions of up to 30 percent. After deal closing, our integration risk framework helped the client align ongoing debt-servicing capacity with expected cash flows. Ultimately, the firm negotiated financing at 1.8 percent below standard market yield and was fully informed on post-acquisition risk mitigation.