Given that 50% plus of mergers and acquisitions fail to achieve the expected value, commercial due diligence is of paramount importance in any business transaction, whether it’s an acquisition, merger, partnership or investment.
Challenged with target companies providing overly optimistic financial projections, which can create unrealistic expectations about future performance? Does this impact your ability to critically evaluate the assumptions underlying these projections?
Trying to understand customer concentration, both on revenue & gross margin? Does an over-dependence on a small number of major customers pose a significant risk? Does losing a key customer have a substantial negative impact on revenue and profitability?
Is it important to assess the target company's position in its market, including market trends, competition, and growth potential? Does this help buyers and investors understand the market dynamics and growth prospects?
In cases where the deal involves merging the target company with an existing business, do you struggle with the identification of significant integration challenges and barriers to deal completion?
