For leading investors, whether financial or strategic, it has become common practice to conduct commercial due diligence to increase confidence in financial projections. In a commercial due diligence engagement, we conduct an analysis of the potential target’s market environment and competitive position and their impact on the target’s business plan.

Our approach to commercial due diligence is adapted to individual client requirements. This analysis focuses on key issues crucial to the investor, relates, inter alia, to the review and assessment of assumptions made in budgets and forecasts of the target against market evidence and industry expectations in the sector. Furthermore, a commercial due diligence investigation enables the investor to both address potential market risks in the target’s valuation and recognise the target’s unrealised growth potential.

Typically, commercial due diligence can address the following issues:

• Market mapping, segmentation and sizing
• Demand drivers and key purchase criteria
• Customer portfolio development and customer referencing
• Market positioning, business performance and sustainability of strategy
• Industry dynamics and competitor behaviour
• Pricing and margins, including projection sensitivities
• Revenue and gross margin modelling.

While we work in close collaboration with our clients and management teams, we always give an independent and objective view of our findings. Core to our proposition is that we rapidly build the knowledge available on the business by independent research, as well as our extensive experience of sectors, leveraging both a national and a world-wide network of industry experts. Further differentiator is that we are very focused on the financial impact of our findings and can gain efficiency when working alongside our financial due diligence teams. Finally, our Warsaw-based  team has extensive commercial due diligence experience in Poland and throughout the wider CEE region.