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Customer Intelligence in the CDD realm applies a methodology known in the market research world as “Voice of Customer,” or VoC, which is important to understand and leverage when evaluating target acquisitions and their viability or upside.
Tailoring the Commercial Due Diligence process to the specific nuances of a target and its market ensures that investors gain a truly comprehensive and actionable understanding.
Commercial Due Diligence (CDD) isn’t just a box to check in the private equity dealflow process—it’s one of the most decisive steps in shaping conviction around a deal. This article outlines what’s inside the envelope of a standard CDD engagement, when it happens, and how we structure our work at Martec around five core pillars.
When executed effectively and exhaustively, the resulting intelligence gleaned from thorough CDD provides a clear map to avoid risk, increase volume, enhance margins, and explore numerous other ways to increase the total returns an investor can capture with a specific target.
Commercial due diligence (CDD) plays an essential role in the deal-making process, providing a deep dive into a target’s market, competitive landscape, and growth potential. Now more than ever, engaging in CDD can significantly improve the investment decision-making process and drive higher returns…quickly, efficiently and reliably.
Though most private equity firms typically engage in commercial due diligence once an acquisition target has been identified, there is another research approach that involves a combination of thematic and funnel analysis that can be employed — especially during times in which a more proactive approach is necessary. 1.) Market Prioritization, 2.) Target Prioritization, and 3.) Target Deep-Dive