BUY WITH CONFIDENCE
BENEFITS OF DOCUMENT
DESCRIPTION
Commercial Due Diligence (CDD) is the process undertaken before a transaction is finalized to evaluate the target/investment and attain a high degree of confidence in the assumptions (e.g., financial, operational) underlying the bid. This process is important to acquiring companies as it provides a comprehensive understanding of the market dynamics, competitive landscape, and customer needs related to a potential acquisition or investment. CDD aids in making informed strategic decisions, optimizing investment outcomes, and mitigating the likelihood of unexpected post-transaction challenges.
More specifically, Due Diligence will do the following:
Give the acquirer an idea of the target management's capabilities.
Bring to light major risks and problems at the target—so called "skeletons in the closet."
Identify upsides.
For these reasons, it's crucial to follow a robust, proven approach to conducting Due Diligence. This PowerPoint presentation explains the full CDD process. We outline a 4-phase process to CDD (within the broader 5-phase Direct Investment Value Chain):
1. Initial Screening
2. First Round Bid
3. Shortlist
4. Exclusivity
This framework is developed within the advisory perspective of a management consulting firm, although it can also be used directly by the buying company. The deliverable produced at the end of the CDD engagement should cover 7 areas of assessment:
1. Executive Summary
2. Market Analysis
3. Competitive Environment
4. Analysis of Business Model
5. Analysis of Investment Case
6. Upside Opportunities
7. Exit Opportunities
The Due Diligence Process has 9 key elements:
1. Workplan
2. Milestones
3. Ideal Team Structure
4. Problem Solving Tips
5. Data Gathering Tips
6. Process Tips (Planning, Modeling)
7. Data Room
8. Management Presentations
9. Mindset
Additional topics discussed include Advisors & Roles, Types of CDD Projects, Buyer Profiles, Transaction Types, among others. This deck also includes relevant template slides for you to use in your own business presentations.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Due Diligence PowerPoint Slides: Commercial Due Diligence (CDD) PowerPoint (PPT) Presentation, LearnPPT Consulting
OVERVIEW
We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
We have served 100s of clients that range from Fortune 500 companies to tech startups to $1B+ private companies.
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Commercial Due Diligence (CDD) Frameworks
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