Commercial Due Diligence

What is Commercial Due Diligence?

Commercial Due Diligence (CDD) is an analysis that provides a thorough understanding of all details of b2b sales at a company hence CDD offers a deeper b2b sales risk assessment than a traditional Due Diligence. more

After the 2008 financial crisis investors realized that traditional sales reports and forecasts cannot provide a precise picture of b2b sales specifically regarding the future opportunities and threats. A normal Due Diligence process focuses mostly on the general ledger and the plain sales forecast numbers and many aspects of sales are not covered by a due diligence process.

Who needs Commercial Due Diligence?

Today investors want to look under the hood and understand the everyday b2b sales mechanics of a company more

This is especially true in the startup world where historical company data is very limited. This trend changed the way investors (venture capitalists, angels etc.) look at sales departments. Nowadays investors want to know much more about sales methodologies, sales processes and sales acceleration tools that are used at the company. 

What areas a Commercial Due Diligence covers?

Commercial Due Diligence offers a thorough analysis and complete understanding of

how sales numbers come to existence,

who is controlling the strategic relationships with key accounts,

what the replaceability or scalability of the sales team is,

what the quality and update status of sales training materials are,

what type of data is not entered into the CRM system

and more…

The immediate benefit of a Commercial Due Diligence

A CDD decreases investment risks.

What is unique in our CDD

Some consulting firms offer services that resemble Commercial Due Diligence by analysing traditional business areaslike...

 market structure, size and drivers, key competitors,  market share, basis of competition and barriers to entry, customer and supplier feedback, business plan achievability, key risks and areas for improvement 

but in our sales assessment (CDD) we specially focus on

lead source scalability

sales methodology modernity

dependency level on certain sales individuals

motivation system sustainability

Is CDD for you?

Though we mostly work for venture capital firms and angel investors we also help CEOs in their effort to manage board expectations and understandings. If you are any of the above, have a look at the first step of a CDD.

 

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