COMMERCIAL DUE DILIGENCE IN INDUSTRY

MEYER INDUSTRY RESEARCH, based in Munich/ Germany, offers the preparation of your commercial due diligence for the industrial sectors automotive, mechanical engineering, electronics, medical technology and energy in the German market.

We use our experience from conducting more than 300 customer-specific market analyses and competitive analyses to provide you, as the buyer or seller of a company, with the best possible support. Our commercial due diligence services enable strategic investors and private equity clients to make a neutral assessment of the business model, market, competition and future viability of target companies in a short-term and resilient manner.

CURRENT COMMERCIAL DUE DILIGENCE - PROJECT EXAMPLES

For our clients, we conduct commercial due diligences that are individually tailored to the respective requirements of the seller or buyer side. Click on the project examples to get to know some exemplary Commercial Due Diligence projects of MEYER INDUSTRY RESEARCH.

For an internationally active automotive supplier (focus: interior trim), we investigated the possibilities of acquiring medium-sized market players in Europe, North America and China within the scope of a buy-side commercial due diligence. For this purpose, we compiled an overview of the companies active in the market and analyzed the most attractive targets with regard to their suitability and availability.

In this commercial due diligence project, we supported our client, an international private equity fund, in the analysis and valuation of a leading manufacturer of packaging machines that was up for sale. We examined the key figures, the market environment, the competitive situation and the customer structure on the basis of extensive international secondary data evaluations within a few working days.

For our client, a strategic investor in the healthcare market, we investigated the global market for wound care products as part of a buy-side commercial due diligence. For this purpose, we analyzed the key figures and the positioning of the target company as well as its business model with regard to future viability and compared these data with the general market development and the development of important competitor companies.

Our client, a strategic investor in the technology environment, was interested in acquiring a major manufacturer of special gear units for marine, energy and mechanical engineering applications. In a customized commercial due diligence, we investigated the market development, the competitive positioning in the market and the key industry trends in the market for industrial special gear units.

EXTENSIVE COMMERCIAL DUE DILIGENCE EXPERIENCE

Our clear focus on industrial commercial due diligence projects offers advantages to our clients: We have access to key information sources, know how to efficiently gather information in your industry and have access to key market experts. For buyers and sellers, strategic investors and private equity firms, we provide customized, up-to-date market and industry information at short notice and analyze potential target companies to the point.

Before founding MEYER INDUSTRY RESEARCH, the founder of our company, Matthias Meyer, worked for a leading strategy and investment consulting firm where he was involved in numerous commercial due diligence projects.

Find out about the essential facts on CDD on our CDD factsheet or download our current Commercial Due Diligence Checklist download.

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Questions and answers about commercial due diligence

Here we answer some common questions asked by our clients about conducting commercial due diligence in the industrial sector:

Commercial due diligence (CDD, used analogously to: strategic or market due diligence) is a special form of strategic market analysis in which the strengths, weaknesses, opportunities and threats or future prospects of a company in the market are evaluated in a structured manner (SWOT analysis). Alongside financial due diligence, legal due diligence and HR due diligence, CDD is another elementary component in the evaluation of the target company in corporate transactions/M&A projects. Due to the demanding analysis tasks, CDD is also referred to as the supreme discipline of market analysis. To obtain reliable information for CDD, one uses both secondary sources (e.g. statistics, publications of companies in the market, competitive analysis, professional articles) and primary market research methods (e.g. interviews with existing customers, potential customers or market experts).

Depending on whether the due diligence is performed for the seller or potential buyer of a company, it is referred to as sell side or buy side commercial due diligence. Sellers need due diligence in order to be able to present a neutral market environment assessment in the sales process. It provides reliable arguments for an attractive valuation of the company and a resulting high sales price. A buy side due diligence critically examines the market attractiveness and market positioning of the target company and uncovers possible hidden risks of a company purchase. It enables the buyer, who otherwise usually has limited information on the market and the company, to make an appropriate valuation based on neutral information.

To markets in the industrial and B2B environment lie in many cases less directly available market figures and statistics available than in consumer markets. Therefore, the reliable estimation of market size and market growth is a particular challenge for commercial due diligence projects in industrial and niche markets. We use our extensive accesses to all relevant industrial data sources and supplement them with a distinctive modelingCompetence for the valuation of complex markets. An important role is also played by the Assessments from industry expertswith whom we maintain extensive contacts.

Identifying competitors already active in the market and analyzing the market development strategies of these players is a central task of commercial due diligence (CDD). Which competitors are active in the target market, what is their positioning, which technologies do they work with, how successful are competitors and which best practices in the business model can be identified? How does the customer structure differ in important benchmarks? We aggregate important key figures, analyze competitors' strategies and derive an assessment of the target company's competitive position.

Interviews with market participants and industry experts are an important source of information when evaluating companies and markets. Our proven interview process ensures the maximum success of the interviews: (1) We develop a suitable interview guideline with the central questions in close consultation with you. (2) We search our network and other suitable environments for informative interview partners. For example, we interview decision-makers at customers, non-customers, dealers and sales partners, associations, research institutes or other participants in the value chain. You will receive a list of proposed interview partners for approval. (3) We conduct the interviews in compliance with professional principles. (4) We compile the assessments of the interview partners and derive implications for the company and market evaluation .

Company sales are often time-critical and the deadlines are tight. Therefore, we support our clients in a commercial due diligence on short notice and unbureaucratically. The first partial results are often available within a few days, and the total processing time is usually no longer than a few weeks.

Do you have any further questions about conducting a market due diligence? We would be happy to be your contact: Contact

COMMERCIAL DUE DILIGENCE - EXTENSIVE REFERENCES

Managing directors, sales managers, strategy and business development managers at more than 100 client companies rely on our meticulous market analyses for one central reason: the uncompromising quality and resilience of the results of our market analyses. Our demanding customers also appreciate the personal and open cooperation with our team and express this in numerous references - please get an impression yourself.

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INDIVIDUAL CONSULTING FOR YOUR MARKET ANALYSIS

Trustful personal cooperation and the high quality and resilience of our analyses are top priorities at MEYER INDUSTRY RESEARCH.

 We would be happy to advise you intensively and without obligation in the run-up to a possible cooperation on a market study, if desired also at a personal appointment at your site. We look forward to your inquiry!

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