Commercial due diligence

Not knowing what you're buying can quickly get expensive. As a corporation or private equity house interested in buying another company, you not only need to understand the numbers behind that company's current and expected performance. You have to explore the whole environment and see where the market is going.

With our commercial due diligence, you'll receive a comprehensive review of the target company’s business plan based on projected market conditions, the industry and the competition.

 

Recognising when you need commercial due diligence

You need to know:

  • how market or competitive uncertainty will impact the value of a company (e.g. due to new technologies, customers, trends, legislation, powerful buyers, or a new geographic market) 
  • the feasibility of realising revenue/EBIT projections that appear very aggressive compared to in the past
  • the validity of assumptions about revenue/EBIT projections that are based on the success of new products, customers or markets

 

A more confident transaction

With our entire PwC network at your finger tips, you'll be able to:

  • take informed decisions about the route you wish to take at the most critical stages of the transaction process
  • rely on a rapid diagnosis of - and focus on - key commercial deal issues from experts in your sector
  • examine the external market trends and their impact on the target's ability to achieve forecast results
  • assess the market size and segmentation and growth potential
  • analyse key competitors and their market shares to establish whether the target has defined a niche to exploit its strengths and advantages

How we work

Our commercial due diligence specialists compare the external analysis with an assessment of the target's competitive positioning by: 

  • evaluating the target's strategy
  • examining growth plans
  • interviewing customers to obtain their views
  • assessing how sales and marketing turn strategy into action