Commercial and market due diligence
Any business (a corporate or a private equity house) seeking to make an acquisition needs to understand not only the specific performance of the intended target, but also how this relates to projected market conditions and its competition within a specific industry. Without understanding the unique qualities of the sector a business is in, it is impossible to arrive at a realistic valuation. PwC can provide commercial and market due diligence reports, involving a thorough review of the company’s business in the context of market conditions and competition.
Potential issues
- You are considering acquiring a company, but there is market or competitive uncertainty, such as new technologies, customers, trends, legislation, powerful buyers, or a new geographic market etc, and you need to know how these issues might impact the current and future value of the company.
- You are considering acquiring a company, and the revenue/EBIT projections appear to be very aggressive (relative to historic performance). You therefore need to test/validate the achievability of these projections.
- You are considering acquiring a company, and a significant proportion of the revenue/EBIT projections appear to be based upon the success of new products, customers and/or markets. You therefore need to test/validate the reasonableness of these assumptions.
How can PwC help you?
- Your organisation reaps maximum benefit from the PwC network at the most critical stage of the process and can therefore make informed decisions as to whether this is still a route you wish to take.
- Rapid diagnosis of – and subsequent focus on - key commercial deal issues with the result that you can be sure that you have had expert advice regarding recent developments in the chosen sector.
- Our teams are likely to have had prior experience in the industry and will therefore not have to go up the ‘learning curve’ at your expense. This helps keep your costs down.
- PwC’s conclusions are based on well-researched and integrated views on all aspects of the transaction. This translates into a less cumbersome and more efficient due diligence process, meaning your organisation may only have one report rather than two or three. This then saves you time and of course, cost.
PwC's Commercial and Market Due Diligence Services cover analyses/assessments of:
- Target company’s positioning and competitiveness;
- Achievability of business plan projections;
- Target specific market/industry-related investment risks;
- Strategic value-creating opportunities;
- Exit risks and opportunities
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