Understanding the Commercial Due Diligence Process PPT


This PPT slide, part of the 63-slide Commercial Due Diligence (CDD) PowerPoint presentation, provides a comprehensive overview of Commercial Due Diligence (CDD), emphasizing its critical role in evaluating acquisition targets. It begins with a clear definition, stating that CDD is a process conducted prior to a transaction to assess the target or investment. This assessment aims to validate the underlying assumptions—financial and operational—of the bid, ensuring that decision-makers have a solid foundation for their choices.

The slide outlines the due diligence process, highlighting the need for independent and verifiable information. It specifies 3 key areas of focus: the company's past and projected performance, its capabilities in relation to the requirements for success, and the management of risks along with potential upsides. This structured approach ensures that all relevant factors are considered, reducing uncertainty in the acquisition process.

Further, the slide details the objectives of conducting due diligence. It aims to provide the acquirer with insights into the target management's capabilities, identify significant risks or hidden issues—referred to as "skeletons in the closet"—and recognize potential upsides that could benefit the acquirer. This multifaceted analysis is crucial for making informed decisions.

Lastly, it notes a limitation of CDD, clarifying that while it offers valuable insights, it does not generate additional business information. This distinction is important for setting realistic expectations regarding the outcomes of the due diligence process. Overall, the slide serves as a foundational guide for executives considering a CDD approach, emphasizing its importance in informed decision-making.



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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