Commercial Due Diligence

Commercial Due Diligence and Reducing Acquisition Risk

Within the overall Due Diligence process, the Commercial Due Diligence is often one of the most undervalued elements.  However, information uncovered in a well-executed Commercial Due Diligence process often identify issues that feed into price negotiations, and therefore reduce the risk of overpaying.  Some examples uncovered in our research that may affect that overall value of the company and therefore drive the negotiated price includes:

• At-risk volume form major customer
• Competitors investing in potential game-changing technology
• Limited or no differentiation on the critical product or service attributes
• Declining competitive position
• Potential changes in government regulations of subsidies
• Looming offshore competition
• Understanding the distribution channel – who controls the customer?

Revenue projections are always inflated by the seller, find out more about how Priority Metrics Group’s Commercial Due Diligence process can deliver the market information needed to minimize the risk associated with overpaying to when acquiring a company.