Commercial Due Diligence
Commercial Due Diligence
A key question in any transaction is whether the target company’s business model can be considered sustainable. Addressing this question is the purpose of a Commercial Due Diligence (CDD). As part of this assessment, we analyse the target company’s business model, market environment, and operational processes.
Specifically tailored to the needs of financial investors, we have developed a lean and efficient Red Flag Due Diligence (DD) approach. Drawing on industry benchmarks from the printing and packaging printing sectors, we identify potential opportunities and risks associated with the proposed transaction at an early stage. This results in significant savings in both time and cost.
Struktur einer Commercial Due Diligence
PHASE 1
DEFINING PROJECT SCOPE AND KICK-OFF
Assembling the Project Team
___________
Assessment of Project Scope, Creation of Checklists
PHASE 2
MARKET AND COMPANY ANALYSIS
Initial Investment Assessment
___________
Positioning of the Company in the Market and Competitive Landscape
___________
Analysis of Market Structure and Growth Drivers
___________
Assessment of Technologies and Business Processes
___________
Expert Interviews
PHASE 3
BUSINESS MODEL EVALUATION
Business Plan Evaluation
___________
Analysis of Organizational Structure and Management Potential
___________
Analysis of Customer Behavior, Products, and Services (USPs)
___________
Evaluation of the Company’s Financial Strength
___________
Conducting a Competitive Analysis and Market Positioning
PHASE 4
DEFINING PROJECT SCOPE AND KICK OFF
Assembling the Project Team
___________
Assessment of Project Scope, Creation of Checklists
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.
FAQ
What characterizes the typical project flow of a Red Flag Due Diligence?
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.
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- Packaging Industry, Print Media, Printing Industry, Restructuring, Strategy Consulting
- Packaging Industry, Printing Industry, Restructuring, Strategy Consulting