Commercial due diligence is the process of appraising a target by reference to its market and, above all, whether the company is positioned to succeed. We tackle the issues at the heart of the business: market conditions and outlook, macroeconomic influences, industry structure, regulatory environment, competitive position, and relationships with key customers and suppliers. We consider, in particular, the impact of these factors on the target's ability to deliver its forecast results which form the basis of valuation of the company. Our integrated approach, which combines commercial, financial and tax due diligence services, gives you a deeper understanding of the business.
Commercial due diligence seeks to answer some tough questions. Here are a few examples:
- Is the level of market demand sustainable?
- Is the company focused on the right market segments?
- Will the introduction of new technology affect demand?
- How strong are the company's relationships with key customers?
- Will their purchasing patterns alter in the next five years?
- Is further customer penetration achievable through existing sales channels?
- How do the company's products compare with competitors'?
- How is the product life cycle changing?
- How likely is the company to achieve its forecast results?
- How sound are the underlying assumptions?
- What are the material sensitivities?