This PPT slide, part of the 63-slide Commercial Due Diligence (CDD) PowerPoint presentation, emphasizes the importance of adopting an investor mindset when evaluating business opportunities. It outlines 3 key objectives: assessing potential downsides, identifying value creation opportunities, and exploring exit strategies. Each objective is accompanied by specific questions that guide the evaluation process.
For potential downsides, the focus is on identifying deal breakers and understanding whether management projections require adjustments. It highlights that all deals carry risks, and distinguishing between unacceptable risks and typical downsides is crucial. A mitigation plan should be in place to address these risks effectively.
The second objective revolves around value creation opportunities. It prompts evaluators to consider quantifiable and realistic opportunities and to assess their worth. The slide notes that while investors are inclined to seek upside potential, this must be grounded in reality to avoid pursuing unviable operations. Skepticism is encouraged,, but an open-minded approach is essential for thorough analysis.
Lastly, the slide addresses exit opportunities, urging evaluators to think about potential buyers and the company’s future business case. Questions about market evolution and the timing of exits are posed to ensure a comprehensive understanding of the investment’s trajectory.
Overall, the slide serves as a strategic framework for decision-makers, emphasizing the need for a balanced approach that weighs risks against potential rewards. This mindset is vital for making informed decisions that align with long-term business objectives.
This slide is part of the Commercial Due Diligence (CDD) PowerPoint presentation.
This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It explains the approach to Commercial Due Diligence utilized by global strategy consulting firms.
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