Commercial Due Diligence

Independent Market Validation to Support Investment Decisions

Office meeting
Obtain objective, data-driven insights on market environment, sustainable competitive advantage of the target company before committing capital.

Commercial Due Diligence is a critical element of the pre-investment phase for investors looking to acquire a stake in a company. CDD is performed to provide the investor with a clear, independent view on the commercial opportunities and threats related to a proposed deal. 

The importance of independent CDD

In the process of selling a company, typically all positive aspects are highlighted as it is all in the interest of a successful transaction. Post deal it might turn out that things are a bit different.

Luckily, many of these surprises can be prevented with a solid Commercial Due Diligence process, preferably carried out by an independent CDD-specialist, like Hammer Market Intelligence.

CDD from Market Intelligence specialists

Hammer's unique approach to CDD entails in-depth analysis of the commercial attractiveness of the target company. This covers both the company itself and its market in terms of size, growth, dynamics, trends, competitive field, and clients. Our extensive experience in market research, combined with expertise across various domains, ensures effective and efficient execution. This results in high-quality insights delivered in the shortest possible time frame.

  • Target Company Analysis

    Hammer evaluates the target company's business plan, cost structure, and strategic direction, including recent developments like management changes or capacity expansions, and analyzes the uniqueness of the product or service portfolio.

  • Market Assessment

    Hammer analyzes the market's maturity, growth drivers, trends, and potential disruptions, identifying relevant regulatory frameworks and emerging substitute markets.

  • Competitor Analysis

    Hammer examines the competitive landscape by identifying key players, assessing market share distribution, and evaluating the intensity of rivalry, allowing for strategic positioning of the target company.

  • Customer Insights

    Hammer gains insights into purchasing behaviours, brand loyalty, and spending patterns of the customers, identifying key buying criteria to evaluate the target company's market position.

  • Revenue and Pricing Analysis

    Hammer analyzes the target company's financials to understand revenue streams, cost and revenue projections, and pricing structures, determining the reasonableness of financial forecasts.

Our CDD offering

Complete CDD

The full Commercial Due Diligence provides a complete picture of the market dynamics and the commercial potential of the target company.

Red Flag CDD

The Red Flag CDD is typically conducted in situations where time is of the essence and focuses on specific high-risk areas, customized to the needs of the investor.

Top-up CDD

The Top-up CDD is conducted in addition to a previously conducted CDD, and focuses on specific areas where additional information is required by the investor.

Avoid bleeders, rely on Hammer for CDD

Egbert Philips

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