In most traditional due diligence efforts, only a subset of the strategic and commercial issues are adequately addressed while other important issues are overlooked. The result is that critical investment risks and upside opportunities are often missed and valuation decisions are made with suboptimal information.
Our approach to commercial due diligence is unique. We address the basic diligence issues in terms of market assessment and customer calls, but we are often asked to go further by assessing internal commercial capabilities, stress testing management’s revenue forecast, and identifying key growth opportunities for the business. Our due diligence approach may involve one or more of the topics depicted on the left-hand side of the below chart, and yield important insights for the deal team.