Commercial Due Diligence Services India | Due Diligence Consulting | Commercial Due Diligence Consultants Mumbai, India

The business world has been witnessing a slew of Mergers, Acquisitions, and Consolidation deals in recent years.

Pressure from new entrants, including MNCs, cost-competitiveness, and customer retention have all led to existing companies working together to gain a market advantage, or small players being acquired by those with strong financial backing. Furthermore, the corporate debt and higher default rates have resulted in the emergence of Asset Reconstruction companies, who buy bad loans from banks at a discount and plan to turn these assets around to raise their value.

ISOMantra Commercial Due Diligence Expertise – Due Diligence Consulting process is different from the financial due diligence process. Although financial metrics are relevant, commercial due diligence assesses a company’s attractiveness based on a variety of internal and external variables such as business strategy, forecasts, product portfolio, market segments, competitive analysis, pricing, and revenue models.

In each of these scenarios, assessment by a seasoned specialist is critical to determining the true potential of the asset, especially in the case of manufacturing, infrastructure and technology firms. Most people lack the business and technical knowledge needed to assess the fine points. Furthermore, since each asset is unique, assessment is a bit of an art – you need a keen eye and the wisdom to know what to look for. For all of the factors at play, it makes common sense to hire an outside advisor to help assess and secure the investment. According to the experts, commercial, technical, ESG (Environmental, Social and Governance) due diligence and intellectual property analysis are the second most important due diligence practices.

Leaders of acquiring firms, such as Private Equity (PE) firms or other Asset Restructuring Companies (ARCs) , are familiar with financial principles but may not be strategic experts. When acquiring a business, most acquiring companies have a range of investment goals in mind. Prior to closing the investment, doing professional due diligence to assess the product, design, systems, and organisation helps ensure that those goals are fulfilled. Furthermore, a thorough examination of these dimensions’ aids in the validation of any conclusions taken by the investor.

There are four major sources of value that can be unlocked by acquiring a business:

synergy – Synergies result from greater resource use that are often realized by asset acquisition or headcount reductions within the consolidated organization.

Revenue Growth – By offering new goods or services, joining new markets, expanding into new geographies, or expanding current product routes to market.

Strategic Advantage –  strategic benefit that opens up new avenues for potential development This may involve disrupting the market with acquired technologies, extracting profit from underutilized assets, or gaining skills that allow for level shifts.

Tranformation –  Transform a company’s business model by restructureing, financial engineering, or improvements in management structure
Tranformation Transform a company’s business model by restructureing, financial engineering, or improvements in management structure.

ISOMantra Commercial Due Diligence Expertise – Due Diligence Consulting can help clients assess the following areas during due diligence: