Our Approach to Commercial Due Diligence

Posted on November 4, 2016

One of our more traditional offerings at Vertical Strategy is commercial due diligence. In this article, we will share our due diligence approach to give you a sneak-peak into the operation room. Overall, we assist two different types of commercial due diligence clients:

  • Mutual funds looking to investigate the strategy and growth potential before a purchase
  • Companies looking to prepare the necessary material for a possible acquisition

 

Private equity funds – Investigating strategy and growth potential:

Our team has extensive experience in assisting private equity assess national and international acquisition targets. In fact, one of our clients, Maj Invest, was just ranked as the best performing investment fund of Denmark this year. We’re thrilled to see our clients succeed on this level.

Once we’re contacted by a mutual fund, our responsibility is to challenge the strategy and growth potential presented by the seller. The investigation includes the following key components:

  • Market analysis (size, expected growth, trends and characteristics)
  • Customer analysis (customer journey and value propositions)
  • Competition analysis (difference in value propositions and price points)
  • Go-to-market model (markets, sales channels and customer segments)

 

During the process, we will host multiple workshops in which we present our on-going analysis to buyers and sellers, so key stakeholders stay informed.

 

Companies – Preparing material for potential buyers:

We help companies in preparing material for a potential acquisition. Together with the client, we gather the required information to present the growth potential of the company. Our preparation differs from the market in that we prepare a growth strategy, including the must-win strategic initiatives, the business case and an executable plan.