Many private equity investors are willing to pay a premium to acquire companies with comprehensive anti-fraud programs, according to a study by BDO Consulting. Twenty-nine percent of the 100 partners and senior private equity executives reckon its worth the extra money–a median of 5% more–upfront to avoid catastrophes down the road, explains Glenn Pomerantz, national director of BDO's risk advisory practice.

Almost 40% indicated they have been exposed to risk through their investments, and 40% of those exposed say the impact on their investment return was significant. Fifty-nine percent of those exposed have faced instances of fraud worth $1 million or more.

"Private equity investors are a very good gauge as to what the business community is thinking," says Pomerantz. "It's their job to know what CFOs are worried about," because their own livelihoods are at stake.

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