Commercial Due Diligence
In our Commercial Due Diligence (CDD) we analyze the value chain, business model, market and competition, customer structure and product or product portfolio of the (target) company. Our CDD thus answers the question of stability and prospects of the existing business model.
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Our Service
In our CDD we analyze the commercial aspects of the target company as well as the target market and competition. In a practice-proven and always thorough procedure, we examine both the target company and the risks and opportunities of the value chain and the business model itself.
We analyze customer structure, product and planning as well as the marketing and sales activities. In addition, we check the USP (Unique Selling Proposition) or UAP (Unique Advertising Proposition), if applicable, as well as the pricing.
Within the framework of a market and competition analysis, we assign the target company to various fields of competition by means of benchmarking, for example with regard to the quality of the product, pricing policy, he USP, UAP, personnel resources and organization and last but not least profitability.
A special focus of our CDD is on the possible risks in the market, the competition and the business model. In this way we ensure that you invest in a functioning company.
However, we do not only ask how the existing figures fit together, but also how they come about. Our analysis therefore goes much deeper than that of many other providers.
Result
Our commercial due diligence provides clear answers to the question of sustainability of the business model. This is the basis for a well-founded purchase price recommendation as well as recommendations on the deal terms.
Based on the identified risks, we propose concrete measures for the post-acquisition phase and prioritize necessary changes to the business model, value chain or organization.
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Industries and Technologies
Our Transaction Services Team with focus on Commercial (CDD) and Technology Due Diligence (TechDD) has facilitated more than 150 M&A processes in various industries and markets. Our reference projects of past investments provide a small insight.
We have several years of experience in auditing companies from a broad range of sectors, amongst others e-commerce, software, software-as-a-service, platform-as-a-service, ERP, content delivery networks, digital agencies and many more.
Example
For a market-leading technology publishing house we carried out the CDD of a digital platform. The target company had a highly economical business model based on membership fees.
However, an analysis of the KPIs in the product and customer area initially raised doubts about the sustainability of the business model or the durability of the customer structure.
Within the scope of the CDD, all doubts were dispelled – among other things through intensive customer value and durability analyses. On the basis of the CDD results, our customer was provided with a reliable basis for decision-making in order to determine the purchase price and the deal terms.
The transaction was successfully completed after the CDD was closed.
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Success in Numbers
55 experts
with deep and diverse expertise in digital
More than 750 references
with the resulting businesses turning-over hundreds of millions of euros
Over 20 billion Euros
in transaction volume where we ran due diligence and post-merger integration projects
Over 350 transaction projects
in the digital context
