E-Business Due Diligence (EDD)

An E-Business Due Diligence (EDD) examines the scalability of E-Commerce companies and analyzes the key requirements and levers for sustainable future growth related to e-commerce activities. The seven-phase analysis process looks at both internal factors, which include organizational structure and IT systems, and external factors, the focus of which is a traffic assessment, customer structure and market.

While the first phase analyzes the business model, the E-Commerce organizational analysis identifies the core workflows, examines the efficiency and depth of the value creation processes, and derives optimization potential. The strategic customer analysis looks at quantitative and qualitative KPIs from new customer acquisition to churn rates and underlying causes, among other things. Traffic KPIs and development are of particular importance for achieving e-commerce goals, so traffic sources, structure and quality are identified, analyzed and evaluated. IT system analysis assesses the stability, scalability and agility of the IT infrastructure. The examination of the market and ecosystem is intended to provide information on market entry barriers, competitive intensity and growth forecasts, which at the same time serve as assumptions for validating information in the business plan.

Figure 1: E-Business Due Diligence project approach

The service portfolio of due diligence services includes services of varying scope and focus. FOSTEC & Company offers 360-degree due diligence services to analyze all aspects of the business: Commercial Due Diligence (CDD), E-Business Due Diligence (EDD), IT & Technical Due Diligence (TDD), HR & People Due Diligence (HRDD). Detailed information to all Due Diligence Services: