I created a framework for commercial due diligence on acquisition targets

June 21, 2020

by a searcher from Pennsylvania State University in New York, NY, USA

Hi all, I leveraged my CDD work with private equity clients and recent work with a searcher to create a framework that can help searchers conduct their own commercial due diligence on acquisition targets. I'd really appreciate any thoughts or feedback and hope it helps!

https://medium.com/investify-media/how-to-do-a-quick-commercial-due-diligence-on-your-search-fund-acquisition-target-337f56488175

Reply by a searcher
from London School of Economics and Political Science, University of London in London, UK

Thanks for sharing Michael. Great concise coverage of the key points - couldn’t agree more on the importance of digging in and looking at the relevant market segment. Around the stickiness point a great area to dig into is the business / customer data if available - customer lifetime value, churn rate, top customer concentration, contract lengths, product performance etc etc.

Reply by a searcher
from Stanford University in Dublin, Ireland

Thanks for sharing Michael & very helpful! Agree with Juan - in a future revised article, I would add a section on Company Systems & People - as a potential acquirer will want to see ability to scale to critical mass through a strong middle management & org chart, as well as good systems. otherwise, great summary!

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