During the diligence phase you need a sound evaluation of all the risks in the transaction. A slight change in the market growth rate or the target’s ability to capture share can sometimes be the difference between a good and bad investment.
We have a proven commercial diligence process that uses primary research and rigorous analysis to identify and evaluate risks to your thesis.
Research
- Finalize investment thesis
- Evaluate industry dynamics and profit drivers
- Quantify market size and share trends; predict future impacts
- Identify potential disruptors
Analysis
- Combine historical data with primary and secondary research to forecast sales baseline
- Evaluate and quantify risk factors
- Quantify potential opportunities
Results
- Establish a range of revenue and profit expectations
- Identify high potential growth opportunities
- Prioritize risks including deal-breakers
- Create diligence documents for lenders
Perfect data rarely exists, especially when little time exists to gather it. We are accustomed to mobilizing at a moment’s notice and creatively finding data to prove out the needed hypotheses. We do whatever it takes: site visits, customer intercepts, consumer surveys, associate interviews, shelf space observations, expert interviews, etc.
Once the diligence process is complete our clients have a much better sense of the risks and opportunities that the target faces; the management team can then create a more informed and strategic 100-day plan.