Many attractive investments are predicated on network effects – these are businesses that connect users, buyers, and/or suppliers. Companies like Visa, eBay, and LinkedIn have famously enjoyed the benefits of network effects …
Most commercial diligence projects will query the channel and the end-customers to measure price sensitivity. Most CIMs will have a graph indicating the degree to which customers are, or are …
The common case: The target asset (i.e., the target company) has a demonstrated track record of running a good business, enjoys healthy margins and some nice growth. The research indicates that …
The Amazon Whole Foods tie-up is certainly throwing more than a couple of mature industries for a loop: food production, logistics and distribution, mass-retail and groceries. Since the announcement (and …
I’m fairly certain that just about every commercial diligence assignment conducted is going to include measurement of the asset’s commercial strength relative to customer needs and expectations, and relative to …
What is more important when looking at a deal: the strength of demand drivers, or the strength of the target company’s brand equity? With rare exception, Demand – not Choice …
Often, we encounter situations in Commercial Due Diligence that may be surprising to our clients, some may even seem negative. With a thoughtful approach, the information can contribute to the …
In one of our earlier articles, we referenced how important it is to accurately define the market when it comes to market sizing requirements. Per that article, “Having clear definitions …
Reflecting on 20 years of investing, one investment professional recently remarked to us, “When I think about what we’ve gotten wrong in the past, the worst times have been when …
Anyone who has worked deals in the industrial engineered products and components markets in the last decade likely encountered a common diligence issue (although the issue is by no means …
An investment thesis often depends on adoption in one form or another (e.g., of a new product, business model, technology, etc.) so we thought it helpful to lay out “best …
Many M&A deals are attractive because the acquisition target company can turn heads and get customers excited about new technology and an enhanced value proposition. Of course, the promise of …
Our Commercial Due Diligence framework, available to investors who want to run sharper diligence on their own deals.
