The Commercial Due Diligence provider of choice in the business services sector
The problem: Articulating the opportunities and risks across an extensive deal flow
Over the past decade, we have provided commercial due diligence on many of the major transactions in the business and support services industries. We work across the entire spectrum of financial investors, we have worked billion pound deals for the largest multi national PE firms, and have become the advisor of choice for a number of the smaller, mid market firms.
Our approach: Combining market knowledge, flexibility and professional integrity
We do not have a standard process to due diligence; we refine our approach for each assignment to meet the requirements of our client.
However, we tend to deploy a range of common characteristics across all of our assignments:
- In depth pre-existing market knowledge, allowing us to focus on the key issues and prioritise effort accordingly
- A strong ability to leverage primary research, including customer referencing and market experts, allowing us to bring a strong qualitative commentary to supplement and inform our quantitative analysis
- A flexible approach to working with investors and management, allowing us to build a better understanding of the business opportunities and ensuring that we are able to respond to specific concerns and timescales as they evolve through the sales process
- Practical assessment of the opportunities and recommendations. We often continue working post deal to assist in implementing these plans through 100 days plans and longer term assignments
As important as our ability to help clients to win processes is our willingness to say that a deal is the wrong thing to do. We have:
- Worked on numerous early stage DD projects where our (negative) advice has proved a key reason for our client not to proceed on the deal. On not one of these transactions has another buyer yet realised a positive IRR on exit
- Approached private equity buyers after the initial announcement on three transactions where we know the business but have not been retained, to discuss and critique the investment strategy. In none of these cases unfortunately was the buyer in a position to take our advice but in each case it has had to write off the entirety of its investment
- Ruled ourselves out of a number of both buy-side and sell-side engagements because we have not been prepared to 'talk up the asset' sufficiently for the buyer's/seller's interests
The Results: Numerous successful deals
Our commercial due diligence has helped investors close numerous deals across the business and support services sector, and ensured that we have built a strong reputation as a trusted advisor to the key investors in the sector. Please feel free to contact us for more information on specific assignments.