Commercial due diligence (CDD)

Overview

An organisation considering an acquisition needs to assess the commercial and market assumptions it is making about the deal. Commercial due diligence assesses the historical and forecast assumptions and performance from the perspective of the markets, customers, competitors and internal capabilities of the organisation.

The due diligence provides insight of the growth projections used as a basis for the proposed deal.

 

Man working in the Deal services department at PwC
Two women discussing PwC's Commercial due diligence services

Issues you may be facing

  • You are facing declining markets and want to strengthen your core business by acquiring competitor products or by expanding into new markets.
  • You need to assess and understand whether your business plan will stand up to due diligence.
  • You need to build on your company’s existing markets and internal capabilities by acquiring a competitor in your own or new geographic market.
  • You want to purchase a company to expand on your customer base.
  • You need to expand your company’s current portfolio of products and services through the acquisition of new ones - potentially to provide a hedge against the movements in the markets in which the company operates.
  • You want to spread your company’s market risk by purchasing a company providing similar products or services in another country.

 

How we can help you

  • Commercial assumptions underpinning the deal.
  • Provide you with greater certainty over the nature of the markets, the customer base and your competitors.
  • Help inform your pricing decisions by gaining better insight into the markets and competitive landscape.
  • Help add credibility to the commercial and market assumptions provided by the seller in the sales memorandum.
  • Identification of value critical issues and market risks and assumptions.
  • ESG Due Diligence and ESG Health Check Capabilities - Informing effective ESG risk mitigation and value creation opportunities.

 

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Contact us

Robert Beighton

Robert Beighton

Director | Strategy and ESG in M&A Transactions, PwC South Africa

Tel: +27 (0) 71 383 9919

Peter McCrystal

Peter McCrystal

Director, PwC South Africa

Tel: +27 (0) 11 797 5275

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