Commercial Due Diligence

Driving growth and improving competitive positioning requires prioritising strategic objectives by making clear choices, and defining key results that measure what matters.

Deloitte’s Nordic M&A Strategy team provides highly customised commercial and operational support to both private equity and corporate clients throughout the M&A lifecycle. Our specialist team has industry and market expertise, and will respond to the specific needs of your transaction or investment situation.

We bring insights that inform your investment thesis, deal valuation and post deal value creation plan by rapidly conducting primary research and combining it with secondary sources, covering the target company’s markets, customers, suppliers, and competitors. And we can do this virtually anywhere in the world.

Through strategic due diligence, we also assess potential upside opportunities that the business may not be taking advantage of, and possible downside risks that could disrupt the near-term or ongoing value of the deal.

Where relevant, we work closely with our financial, tax, IT and HR due diligence colleagues to ensure joined-up insights and a smooth process, reducing the burden on your deal team and the target company.
 

Commercial due diligence services

• Testing important valuation inputs
  These include stability of the company’s current revenue sources, robustness of the growth potential, sustainability of profit margins, and level of investment needed to achieve these.
  
• Sizing markets
  Test a target company’s market positioning both structurally and as perceived by customers and competitors.
  
• Understanding the target’s true competitive position
  Test a target company’s market positioning both structurally and as perceived by customers and competitors.
• Understanding operational effectiveness
  Together with operational and technology specialists, test the effectiveness and scalability of the target company’s operating platform in terms of converting revenue into profit and cash flow.

• Vetting the investment thesis
  Helping define how to drive profitable growth and create an industry winner by employing M&A and other value creation opportunities, in alignment with corporate/investment strategy.
   

Bottom-line benefits

• Clear view of the target company’s performance and positioning.
• Quantifiable support for valuation inputs and clarity on upside potential and downside risks.
• Actionable value creation opportunities and synergies (where applicable).