Best Practice Briefs Diligence Matters CDD Best Practices for Principal Investors

The Importance of Product-Market Fit in Commercial Due Diligence

Globalization, digitalization, information access, and an increasingly discerning customer base have been contributing to a business environment that continues to build in competitive intensity year after year. To survive and thrive, companies must demonstrate meaningful growth that outperforms competitors or displaces incumbents. This growth can take the form of enhancement of existing…

By Nature, it’s the Channel (and a Leading Value Gen Lever)

By Mark Stein

The Target Co. is playing in a great space (e.g., strong tailwinds, right segment(s), etc.), has product(s) that attract valuable customers, the diligence indicates that the product line is differentiated, and the management team is presenting a very good, if not great, growth case. Unit economics are strong, and the IC can reasonably conclude that this might be a great opportunity. A nice find…

In Diligence, Competition Between Competing Budget Priorities can be more Important than Competitive Position

By Mark Stein

Many deals are attractive because the target company can turn heads and get customers excited about new technology and an enhanced value proposition.