Whether making an acquisition or investing in a new market/product, our clients are faced with critical questions: Do significant value creation opportunities exist? Is the industry fundamentally attractive? Does the target company have a healthy position in the industry?
Cetas Healthcare brings an approach to commercial due diligence that generates insights on specific targets or selected geographies, and guides professionals in their investment strategy. Our commercial due diligence program considers these four questions by evaluating:
Value Creation Opportunities: We focus on ways to enhance revenue and reduce cost, opportunities for consolidation or realignment in the industry and implementing operational improvements.
Industry Attractiveness: We consider the size of the addressable market for the company/product; the growth drivers and projections in the addressable market; and the fundamental profitability drivers of the market. We then often build our own detailed market models with projections for the upcoming years.
Positioning of the Target Company: We analyse the drivers of value creation in the industry, differentiating factors for the company and its sustainability.
Our Due Diligence program is customized to each client’s individual needs and level of intensity. Our commercial due diligence assignments can last anywhere from a few days to several weeks, and are generally driven by a potential closing date or the complexity of a target company.