This product (Commercial Due Diligence [CDD] - Areas of Assessment) is a 20-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.
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.
At the end of the CDD process, we should create a 50-page memo that covers each of the following 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
This document also includes slide templates you can use in your own business presentations.
This presentation provides a comprehensive deep dive into each of the seven critical areas of assessment, ensuring that every aspect of the target company is meticulously evaluated. The framework is designed to deliver actionable insights and strategic recommendations, empowering decision-makers to make informed choices. It includes detailed templates that can be customized for your specific needs, streamlining the due diligence process and enhancing the quality of your analysis.
The PPT is structured to facilitate a thorough understanding of market dynamics, competitive positioning, and business model robustness. It also emphasizes the importance of identifying upside opportunities and potential exit strategies, ensuring that all avenues for value creation and risk mitigation are explored. The insights gained from this due diligence process will be instrumental in shaping your investment strategy and maximizing returns.
Developed by seasoned management consultants, this presentation leverages best practices and proven methodologies. It is an indispensable tool for private equity firms, corporate development teams, and strategic investors seeking to gain a competitive edge in their transactions. The clarity and depth of analysis provided will significantly enhance your confidence in the investment decision-making process.
Source: Best Practices in Due Diligence PowerPoint Slides: Commercial Due Diligence (CDD) - Areas of Assessment PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This PPT slide outlines the critical components of a market analysis aimed at identifying macro-economic opportunities and risks for a target company. The objective is clearly stated at the top, emphasizing the importance of understanding market dynamics, particularly for private equity firms that are assessing potential investments.
The first section, "Business Definition," focuses on the market context in which the target company operates. It distinguishes between the immediate market—defined by specific segments and geographic areas—and the broader market that influences these segments. This dual perspective is crucial for understanding the company's exposure to various market conditions.
Next, "Market Drivers" delves into the factors that can influence market dynamics. It highlights demand drivers such as shifts in consumer preferences, regulatory changes, and economic growth. On the supply side, it discusses competitive pressures from existing players, new entrants, and technological advancements. This section underscores the complexity of market interactions and the need for a comprehensive understanding of both demand and supply factors.
Lastly, "Market Attractiveness" evaluates the overall appeal of the immediate market. It considers historical, current, and future market conditions in terms of profitability and growth potential. Industry characteristics are also examined, including the forces at play and structural elements that could impact performance.
This slide serves as a foundational framework for conducting thorough due diligence, guiding potential investors in assessing the viability and risks associated with the target company. Understanding these components is essential for making informed investment decisions.
This PPT slide outlines 7 critical areas of assessment necessary for a comprehensive Commercial Due Diligence (CDD) process. Each area serves a distinct purpose in evaluating the target company and its market positioning.
The first area, "Executive Summary," emphasizes the need to summarize key findings, focusing on significant issues that could impact the decision-making process. It also suggests providing an overview of other investigative components and detailing the scope of analysis, including sources and interviews conducted.
"Market Analysis" follows, where the goal is to develop a perspective on the market environment. This involves identifying opportunities and risks pertinent to the target company, alongside defining the immediate and broader market attractiveness.
The "Competitive Environment" area focuses on understanding the competitive dynamics at play. This includes assessing the target company's relative strength and its position within the competitive landscape.
Next is the "Analysis of Business Model," which evaluates the robustness and attractiveness of the target's business model. This section also analyzes past performance and capabilities.
The "Analysis of Investment Case" provides insights into management's assumptions and identifies areas for potential improvement. It assesses the base case and reasonable further enhancements while considering associated risks.
"Upside Opportunities" addresses the potential for value creation beyond the initial investment case. This section identifies and quantifies additional value levers that could be tapped during the holding period.
Lastly, "Exit Options" offers a perspective on potential exit strategies after a holding period of 3 to 5 years. It evaluates industry consolidation opportunities and assesses potential strategic and financial buyers.
This structured approach ensures a thorough evaluation, aiding decision-makers in understanding the target's viability and future prospects.
This PPT slide outlines 7 distinct areas of assessment within the Commercial Due Diligence (CDD) process. At the center is the "Executive Summary," which serves as a focal point for synthesizing key findings from the other areas. This central position indicates its importance in providing a concise overview of the due diligence outcomes.
The surrounding hexagonal sections represent the various assessment areas: "Market Analysis," "Competitive Environment," "Analysis of Business Model," "Analysis of Investment Case," "Exit Options," and "Upside Opportunities." Each area plays a critical role in evaluating the commercial viability of a business or investment opportunity.
Market Analysis focuses on understanding the current market conditions, trends, and potential growth areas. This is essential for identifying how a business can position itself effectively. The Competitive Environment section examines the dynamics among existing competitors, which is vital for assessing potential threats and opportunities.
Analysis of Business Model delves into the operational framework of the company, evaluating how it creates, delivers, and captures value. This area is crucial for understanding the sustainability of the business. The Analysis of Investment Case assesses the financial implications and potential returns, guiding investment decisions.
Exit Options explores the potential pathways for divesting or selling the business, which is important for stakeholders considering future liquidity. Lastly, Upside Opportunities identifies avenues for growth and expansion, highlighting areas where the business can capitalize on market trends.
Overall, this slide provides a structured approach to CDD, emphasizing the interconnectedness of these areas in forming a comprehensive evaluation of a business opportunity.
This PPT slide focuses on the exploration of value creation opportunities beyond the existing investment case, specifically tailored for private equity firms. The primary objective is to identify and quantify potential upside options that could enhance the overall investment strategy. It emphasizes the need for a deeper understanding of the size and nature of these upsides, as well as their deliverability.
Three key subcomponents are outlined. The first is the "Identification of Further Upside Opportunities," which prompts the exploration of additional value creation levers. This includes avenues such as industry consolidation, geographic market expansion, and service or product diversification. The mention of operational improvements not accounted for in the initial investment case suggests a thorough analysis of internal efficiencies, potentially leveraging benchmarking data for more informed decision-making.
The second subcomponent, "Deliverability of Upside Opportunities," addresses the feasibility of the identified options. This is crucial for assessing whether these opportunities can realistically be pursued and implemented. Understanding the deliverability helps in prioritizing which options to focus on based on their likelihood of success.
Lastly, the "Potential Realization of Upside Options" emphasizes the need for a structured plan to actualize these opportunities within a defined timeframe, specifically a 100-day improvement plan. This structured approach indicates a commitment to actionable outcomes, ensuring that the identified opportunities are not just theoretical, but can be effectively executed.
Overall, the slide serves as a framework for private equity firms to systematically evaluate and capitalize on additional growth avenues, ensuring a comprehensive due diligence process. It highlights the importance of both strategic identification and practical implementation in driving value.
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
Read Customer Testimonials
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"One of the great discoveries that I have made for my business is the Flevy library of training materials.
As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy
It is well worth the money to purchase these presentations. Sure, I have the knowledge and information to make my point. It is another thing to create a presentation that captures what I want to say. Flevy has saved me countless hours of preparation time that is much better spent with implementation that will actually save money for my clients.
"
– Ed Kemmerling, Senior Lean Transformation Expert at PMG
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.
The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."
– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The
quality of the decks available allows me to punch way above my weight – it's like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.
"
– Roderick Cameron, Founding Partner at SGFE Ltd
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."
– Michael Evans, Managing Director at Newport LLC
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."
– Chris McCann, Founder at Resilient.World
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."
– Royston Knowles, Executive with 50+ Years of Board Level Experience
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor
the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant's toolbox.
"
– Michael Duff, Managing Director at Change Strategy (UK)
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.
Click main image to view in full screen.
