Commercial Due Diligence

Description of our services

We deliver a compact, investment-relevant view of the target company. To do this, we triangulate data from the data room, interviews, and market sources, evaluate the revenue model, pricing, sales performance, and customer cohorts, and test the management case against realistic scenarios. The result is resilient opportunity/risk profiles, red flags, quantified value drivers, and a clear recommendation for deal/no-deal and post-deal priorities. Upon request, we create IC-ready slides, a 100-day value creation agenda, and provide support during negotiations.

Typical services

• Investment theses, red flag report & IC slides

• Market size & dynamics (TAM/SAM/SOM), competitive benchmarking

• Customer & cohort analysis (retention, churn, NPS, ARPA)

• Commercial KPI review (CAC, LTV, payback, contribution margin, pipeline)

• Revenue model & pricing assessment incl. sensitivities

• Scenario, plan, and plausibility check (bottom-up/top-down)

• Value creation plan (100 days) & quick wins

• Synergy scans & PMI readiness (Sales, Marketing, Ops)

• Vendor DD readiness & equity story (for sellers)

Case Study Example

In an analysis of the solid surface material market, we provided an assessment for a medium-sized holding company, including a recommendation for the investment.

Customer Situation

A German medium-sized holding company, which primarily holds medium- and long-term investments in established companies, received a short-term opportunity for a new investment option. The target company was from the sector of solid surface materials processing. As part of an investment review, a market, customer, and competitor analysis was to be prepared at short notice as part of a CDD. 

Our Approach

In order to gain a fundamental understanding of the target company's business model and industry, our consultants first conducted extensive research on the solid surface materials market, the corresponding processors, and current trends. Furthermore, over 120 potential interview contacts from the industry were identified in this step. After creating a questionnaire in coordination with the client, our consultants conducted 30 expert interviews with competitors, suppliers, customers, and associations. This allowed the research results to be checked for plausibility and gained deeper insight into particularly interesting market segments. To create the basis for a recommendation for action, the collected interviews and research results now had to be synthesized and an initial analysis along with hypotheses derived. The analysis included, among other things, a segmentation of the target company's customer groups as well as identifying key purchasing criteria in the solid surface materials market. As a final step, our consultants presented the client with a detailed assessment of the attractiveness of the investment option regarding the market, customer, and competitive environment. 

Achieved Results

Through the project, the FS-SC consultant team was able to provide the client with an expert-based assessment of the strengths, weaknesses, opportunities, and risks regarding the target company's business model. The client was provided with current market trends and growth forecasts, as well as a clear recommendation on whether the investment makes sense from an economic perspective.