Commercial & market due diligence

Any business seeking to make an acquisition needs to understand not only the specific performance of the intended target, but how this relates to projected market conditions and its competition within a specific industry.

• Making an acquisition means considering not only the merits of an individual business, but also the context in which the business operates. Without understanding the unique qualities of the sector a business is in, it is impossible to arrive at a realistic valuation.
• A whole range of factors can influence the competitive state of a market. These include technology, customers, legislation, powerful buyers and the emergence of new geographic markets. Each of these needs to be considered for the impact that they might exert on the future value of an acquisition.
• A potential acquisition may be projecting very high earnings. These need to be validated against data from the market to test their reliability. Equally, earnings projections may be based on the development of new products or markets. These assumptions also need to be assessed against the broader general market.
• PwC’s commercial due diligence services are supported by our dedicated industry knowledge and our broad geographical reach. Our understanding of specific markets allows us to assess assumptions and projections and provide efficient, cost-effective services in a timely manner.

If this is your situation

• You are looking at emerging market opportunities . Effectively developing new business or market opportunities is crucial to staying ahead of the competition. But to take full advantage of these opportunities, businesses need to have a comprehensive understanding of the technologies, customers, trends, legislation and powerful buyers in the market to decide the best approach.
• You are considering acquiring a company, but there is market or competitive uncertainty, that 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) or a significant proportion of the revenue/EBIT projections appear to be based upon the success of new products, customers and/or markets.

How PwC can help you

• We have carried out more than 600 commercial due diligence and 150 consulting assignments worldwide. The extent of our global reach means that we can help our clients spot opportunities and advise them on all the relevant factors to help them establish themselves in the appropriate markets.
• We can help assemble the teams which they need on the ground and share with them our in-depth industry and market know-how to identify and address the key issues quickly and cost-efficiently.
• 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.