Commercial Due Diligence
“Is the target company’s business model sustainable?” Answering this question is the core task of the “Commercial Due Diligence (CDD)” process, where we analyze the business environment, market context, and business processes of the target company.
Specifically designed to meet the needs of financial investors, we have developed a lean and efficient “Red Flag Due Diligence” (DD). Using industry benchmarks (printing industry, packaging printing), we identify potential opportunities and risks of the planned transaction early on. This saves both time and costs.
Print Industry: Red Flag Due Diligence
For anyone considering an acquisition, thorough due diligence is essential to avoid overpaying or taking on unforeseen risks. Comprehensive due diligence requires time, money, and the full attention of the executive team. However, in some cases, this can be mitigated by first conducting a Red Flag Due Diligence. This process determines whether a deeper investigation into the target company is even necessary.
To conduct an efficient Red Flag Due Diligence, the M&A experts at Apenberg & Partner have developed a specialized checklist focused on companies in the printing industry, packaging printing, and print media sectors. Using a current industry benchmark, the consultants gain an initial insight into the target company.
Typically, an industry-focused Red Flag Due Diligence takes no more than 14 days to quickly and effectively identify the key aspects.
In Phase 1, DEFINING PROJECT SCOPE AND KICK-OFF, the project team is assembled to clearly define the project scope. This also includes creating checklists to ensure that all necessary steps are captured.
In Phase 2, MARKET AND COMPANY ANALYSIS, comprehensive investment assessments are made. The company is positioned within the market and competition, the market structure and growth drivers are examined, and the technologies and business processes in use are evaluated. Additionally, expert interviews are conducted to gain further insights.
Phase 3, BUSINESS MODEL ASSESSMENT, involves evaluating the business plan, analyzing the organizational structure, and assessing management potential. Customer behavior, products and services, as well as the company’s financial strength, are also examined. A competitive analysis and market positioning complete this phase.
In Phase 4, RECOMMENDATION AND SUMMARY, the results from the previous phases are summarized and presented. This includes an overview of the market, customers, and competition, as well as an evaluation of the company’s strength and stability. A SWOT analysis and an assessment of the economic benefits of the transaction help to provide well-founded recommendations.