Making the right investment decisions isn’t easy in today’s complex world. It requires clear thinking and decisive action, knowing the right questions to ask and understanding the issues that matter.
Wherever you are in the transaction cycle, our experience with financial sponsors, lenders and the C-suite will ensure you’re well prepared.
Commercial due diligence (CDD) is a pre-requisite for lenders. Sponsors and boards may also look to CDD to maximise shareholder value and protect against risk.
A successful due diligence assessment should tell you all you need to know about the target, competitors, market opportunity, routes to growth and key risks so you can achieve your full potential.
Six things a successful commercial due diligence assessment should tell you:
1 Whether there is a clear and sustainable strategic rationale for the target’s existence and service proposition
2 Whether the market opportunity is attractive in terms of its overall size, growth and addressability
3 How the target is positioning versus its competitors, and how is it differentiated from its near-to and new entrants
4 To what extent there is a clear route to growth in the target’s core services/products and markets, either from increasing penetration of the target’s business model or favourable macroeconomics
5 What factors – regulatory, legal, market, technological, economic, competitive, social – could disrupt growth
6 Whether the key assumptions underpinning the business plan are supportable, and what the key risks and upsides (organic and inorganic) are to the plan
Why Grant Thornton
We conduct commercial due diligence on deals with enterprise values (EVs) from £10 million to £1 billion. Everything we do starts with you – we tailor reviews to your key questions and work hard to deliver support exactly where and when you need it. Our international network and sector expertise can provide you with highly relevant and local insight at speed.
You’ll be supported by experienced strategy consultants, with senior involvement throughout. We work with you to optimise value and achieve your strategic goals.