Commercial due diligence (CDD) is of central importance when it comes to the acquisition or disposal of a company. A critical assessment of the strategic fit of the target, the expected synergy potentials between the buyer and the object of purchase and the overall long-term potential of the transaction form the core of a comprehensive commercial due diligence review. As can be seen from Figure 1, CDD is essentially focused on two external and two internal analysis areas.
Figure 1: Main analysis areas in a commercial due diligence review
The external analysis areas provide insights into market attractiveness and the framework conditions that cannot be influenced by the target company. As part of this process, the general environment (technological developments, the economy, etc.), market and competition (potential, growth, trends, benchmarking, customers, etc.) are all examined in detail.
The internal analysis areas evaluate the implementation expertise and critical success factors of the target company. As part of this process, strategy & focus (customer structure, geographical footprint, value contribution) and internal competences (value chain, technologies, research & development, management, etc.) are all assessed thoroughly.
On top of this general methodological approach, we offer objective economic expertise and an in-depth market understanding in regards to e-commerce and digitalisation. Thanks to our experience with numerous strategic projects and the development of inorganic growth measures, we understand the objectives of such projects and can provide our clients with advice and guidance. We’re also happy to help you find potential acquisitions or buyers from our broad network – please don’t hesitate to get in touch!
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Markus Fost, MBA, is an expert in e-commerce, online business models and digital transformation, with broad experience in the fields of strategy, organisation, corporate finance and operational restructuring.Learn more