Market Due Diligence
A Due Diligence is a comprehensive, strictly objective analysis of a company, usually in the context of a
- Business acquisition
- Merger
- Handover of a company to successors
- Participation projects
- Going public or IPO,
- Joint ventures
Often, different clearly definable parts of a Due Diligence are distinguished,
- Tax Due Diligence
- Legal Due Diligence
- Financial Due Diligence
- Cultural Due Diligence
- Technical Due Diligence etc
We deliberately offer to provide only one part of this analysis, that which corresponds the best with our expertise and competence. This part, that we separate from other proof steps if appropriate we call Market Due Diligence. Hereby we want to express that we put a particular focus on the persuasion of the market-relevant preconditions and arguments with the analysis.
Therefore we primarily orient to the following criteria:
| Market Due Diligence - our consulting approach | ||
| Companies | Market and competition | |
| · Strategy, target system, philosophy · Product, service, range of goods · Customer structure, sales order situation, · Marketing mix · Distribution (organization, processes, Controlling) · Internal resources · Business plan check-up |
· Desk research · Expert interviews · Surrounding/market conditions · Market survey · Competition analysis · Identification of growth potentials · Benchmarking |
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| Plausibilization of sales and turn-over plan | ||
| Definition of critical success elements | ||
| SWOT profile | ||
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| Sound evaluation and basis for decision-making | ||
Market Due Diligence as external review of a business of plan
These diligent reports are also ordered by banks, venture capital as well as private equity companies in connection with decisions about outside capital for M&As or new foundations.
Because of the multiplicity of new product ideas, more and more marketing specialists put in charge to check the conclusiveness and validity in the long-run of concepts (business plan) and the sales forecasts.
As we are experienced in writing and checking business and marketing plans for our clients, we may recognize in these documents weak points faster and better.
Questions often are analogous to the above described action here:
- Research of the current state of the relevant market, nationally, Europe - or world-wide,
- Expert interviews: what are the key factors of success for the long-lasting market admission?
- Judgment of the applicant's product quality
- Benchmarks: who are the successful competitors and what can be learned from them?
- Which chances and risks does the market hold for a newcomer?
- Which promotion efforts should be undertaken?
- Estimate of the growth forecasts for the relevant market
- Final evaluation of the persuasiveness of the applicant's arguments.