Due Diligence and Acquisition Analysis

Determine the value

Global merger statistics reveal that over 60% of M&A destroy value for the acquirers. Acquirers may over-estimate synergies, base deals on unrealistic growth target and persist with acquisitions despite negative or incomplete information.

Some of these could have been avoided with effective pre-acquisition due diligence. While due diligence can serves to identify deal breakers, better analyse financial and operational health, the problem often lies in the middle of the deal value chain – Commercial Due Diligence (CDD).

Solutions from StraitsBridge

DueDiligenceAcquisitionAnalysisWe provide customised commercial due diligence (CDD) support to the M&A process of both financial institution and private equity clients. Our CDD program is customized to each client’s individual needs and level of intensity.

Our experienced professionals brings expertise in financial services industry to provide insights to the specific needs of a transaction with focus on a target company.

We help clients understand key trends in the target’s market, the competitive landscape, and more importantly, the target’s ability to achieve its business plans.

Our independent role ensures that clients always get an unbiased perspective on the target’s market and prospects.

Our rigorous methodology investigates the following aspects:

Market environment & Industry Trends Understanding the market landscape is one of the most important prerequisites in strategic decision-making

Target company’s capabilities Assess various elements including key business drivers, market positioning and differentiation, growth opportunities, key barriers and capabilities/investments required, business sustainability, risks, etc.
Competitive Benchmarking Benchmarking provides comparative information for competitive analysis, strategic planning and performance improvement. It also serves to validate the target’s performance goals against market realities
Likelihood of achieving projections We conduct sensitivity analysis of earnings, including cost of achieving the projected revenues, validation of the realism and details underlying target organization’s business plan, key-man risks in the target organization whose departure could adversely impact the franchise value of the target organization

Contact us for more information
Email us: info@straitsbridge.com
Call us on: +65 6408 0501

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Commercial due diligence

In addition to flagging up downside risks to a deal such as synergies and valuation assumptions, an effective CDD also helps uncover potential upside that can be exploited, e.g.

Operational improvements

Revenue maximisation

Turnaround/restructuring opportunities

Synergy opportunities

Capital optimisation

Better asset utilisation

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