- Finalize investment thesis
- Evaluate industry dynamics and profit drivers
- Quantify market size and share trends; predict future impacts
- Identify potential disruptors
- Combine historical data with primary and secondary research to forecast sales baseline
- Evaluate and quantify risk factors
- Quantify potential opportunities
- 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 using creative methods to find the data we need: 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.
Private equity firms rely on SATOV for commercial due diligence for many reasons. Firstly, while financial due diligence is important to assess the financial health of a company, commercial due diligence is equally critical to evaluate the target market, growth potential, and competitive landscape of the company. This helps private equity firms to make informed investment decisions and optimize returns.
Our team is expert in analyzing the target market and assessing the growth potential of a company. They help potential buyers understand the market dynamics, including market size, market share, customer segments, and competitive landscape. This information is critical to determine whether the company is positioned to succeed in the market and achieve its growth potential.
Additionally, SATOV can help private equity firms evaluate the potential impact of public sector policies, regulations, and market trends on the company’s growth potential. For example, changes in consumer behavior or government regulations can have a significant impact on consumer products companies. By working with SATOV, private equity firms can assess these potential risks and opportunities and adjust their investment strategies accordingly.
Moreover, we have particular expertise at evaluating market share and competitive positioning of the target company relative to its peers. We conduct a comprehensive analysis of the competitive landscape, including identifying potential threats and opportunities. This information can help private equity firms develop a clear understanding of the company’s competitive advantages and weaknesses and develop a strategy to optimize its market positioning.
We would be delighted to discuss your commercial due diligence needs and help you gain a comprehensive understanding of the target market, growth potential, competitive landscape, public sector policies, and market trends. Information that is critical to making informed investment decisions and optimizing returns.