Due Diligence Strategy

Effective due diligence, and the insight it brings to the deal table, is critical to the success of our clients’ M&A strategy. Through our multidisciplinary, sector specialist led team and market-leading analytical tools such as Elevate and DealAnalytics, we’re able to support our clients with their due diligence across a range of value levers including pricing, operations, HR, technology, sales and marketing and ESG.

62%

of deals fail to meet financial objectives with poor due diligence cited as the main reason.

Steve Rigby

TSG Deals Director

KPMG in the UK

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Commercial Due Diligence

Through a hypothesis testing-based approach we ensure a clear perspective on a company's prospects, potential for value creation, as well as the associated risks and mitigation strategies in a transaction. Our comprehensive evaluation of the commercial aspects of a transaction and a company's forecasts, includes an assessment of:

The customer base and its performance relative to key buying criteria
Sources of competitive advantage and the 'right to win'
Market dynamics, including the impact of regulatory changes, technology advancements, or other market disruptors
Value drivers and opportunities to enhance earnings growth

This evidence-based, independent evaluation of a target’s financial projections ensures that our clients have the most reliable information available to support their investment decisions.

Operations Due Diligence

We focus on issues and events impacting the cost base, stock holding and capex expenditure. These key areas of operational scope include key value processes:

Operational KPI trends
People costs
Footprint development
Cost saving initiatives (including general improvement culture)
Procurement
Supply chain
New product development
Maintenance programmes and major projects

HR Due Diligence

Technology Due Diligence

Our specialised tools and methodologies deliver a bespoke approach to Technology Due Diligence, optimising chances of a successful transaction, with a focus on crucial material aspects, risk mitigation, and value enhancement.

In buy-side due diligence, we identify risks and opportunities in the target organisation to enable our clients to deliver on their M&A strategy. This ranges from cost savings and operational improvements through digital investments such as automation, AI, data utilisation, and to gaps in the current tech strategy, ensuring a comprehensive evaluation.

In vendor due diligence, we present a comprehensive overview of the technology strategy, infrastructure, and the organisational impact of tech investments on the business. This encompasses an evaluation of the technology stack, cybersecurity, financial projections related to IT expenditure, IT strategy, and more, guaranteeing a thorough assessment.

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Due Diligence Strategy