M&A (Mergers & Acquisitions) Commercial Due Diligence (CDD) Models, Templates and Frameworks Bundle

23 Buy-Side Commercial Due Diligence Models, Templates and Frameworks for Bankers and Strategy Consultants to use when analyzing a Target Company in M&A.

by Tim Demoures
Managing Director @ Eloquens.com & Chief of Staff to the CEO @ WimiFollow 176

by SkyRocket
Master Strategy Consulting FrameworksFollow 27

with Alex Osterwalder
Co-Founder StrategyzerFollow 16

with WMI Consulting
Development, Growth & Operational Strategy Consulting FirmFollow 74

with UNC Kenan-Flagler Business School
Impact. Influence. Know-How.Follow

with adVentures Startup Studio
We Believe Entrepreneurship is a Craft - Not A GambleFollow

with EDHEC Business School
Make an Impact.Follow

with Strategy& - PwC Strategy Consulting
Strategy, made real.Follow

with McKinsey & Company
Global Management Consulting FirmFollow 14

with The Boston Consulting Group
Shaping the Future. Together.Follow 12

with Prof. Albert H. Segars
PNC Bank Distinguished Professor in Strategy & Entrepreneurship at the University of North Carolina at Chapel HillFollowed

with H. Igor Ansoff
Russian American Applied MathematicianFollow

with Bruce Henderson
Founder of Boston Consulting Group (BCG)Follow

with Prof. Francis J. Aguilar
Emeritus Professor @ Harvard Business SchoolFollow

with Prof. Michael E. Porter
Professor at Harvard Business SchoolFollow 13

with Philip Kotler
S.C.Johnson Distinguished Professor of International Marketing at Northwestern University ● Author ● SpeakerFollow

with Cliff Bowman PhD
Professor of Strategic ManagementFollow

with Prof. David Faulkner
Dean at Magna Carta College OxfordFollow

with Arthur D. Little
At the forefront of innovation since 1886Follow

with Lowell L. Bryan
Emeritus Director (Senior Partner) at McKinsey & CompanyFollow

with David White
Senior Adviser at EY Port Jackson PartnersFollow

with Mehrdad Baghai
Chairman of Alchemy GrowthFollow

with Stephen C. Coley
Director Emeritus of McKinsey & CompanyFollow

with Bob Fallon
Former McKinsey ConsultantFollow

with Vijay D'Silva
Senior Partner at McKinsey & Company, Financial Services PracticeFollow

with Asheet Mehta
Senior Partner at McKinsey & CompanyFollow

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Description
Buy-Side Commercial Due Diligence (CDD) is an activity instigated by a potential buyer (Corporate or Private Equity PE) to analyse and reveal a target's company business model, commercial potential and synergies, during an M&A (Mergers and Acquisitions) operation. It is generally led and conducted by a Strategy Consulting Firm (e.g. BCG, McKinsey, Bain, Strategy& etc.). The output is generally a 50 to 200 slide long document, enabling the potential buyer to assess the standalone and/or combined evolution of the target company in the next 5 to 10 years.

The CDD is generally conducted prior to the actual deal but after the short-listing of potential acquisition targets (almost always already reduced to 1 preferred candidate).

It is generally combined with Legal Due Diligences (LDD) and Financial Due Diligence (FDD), carried out by different firms, or the same if a big 4 (e.g. PwC, Deloitte, EY, KPMG).

It gives insights on many sides of the target business such as: market dynamics, competition, revenue, market positioning, demand etc.

A commercial Due Dilligence is usually composed of three phases:
1/ Liaising Process
2/ Preparation of a Genuine Report
3/ Review of the Due Diligence Report

In the report the "classic" aspects covered are generally:
- Company's General Information
- Summary of Key Findings
- Management and Employees of the Company
- Legal Matters
- Products and Services
- Production, Purchasing and Suppliers
- Marketing
- Competition
- Market Environment
- Strategy

The classic activities conducted are (generally categorised in Industry/Market, Customers, Competitors, Growth Projections):
- Market Sizing (TAM, SAM and SOM)
- Competitive Landscape Analysis
- Business Plan Review
- Analysis of the Customers (Customer Feedback, Ideal Customer Profiles, Net Promoter Scores...)
- Sales and Marketing Metrics, Dynamics and Processes
- Assessing the quality of the business goals
- Investigating pricing and margins
- Market Trends, Future and Analysis
- Optimisation of Internal Operations
- Identification of Adjacent Opportunities

Why are Commercial Due Diligences (CDDs) generally conducted?
1. To negotiate the deal price with as much information as possible
2. To have a third party bring a form of assurance that the investment is worth it
3. To analyse the potential external effects affecting the target business
4. To grasp a better understanding of the competitive landscape

More on Commercial Due Diligence here: https://dealroom.net/faq/commercial-due-diligence or https://www.bcg.com/capabilities/mergers-acquisitions-transactions-pmi/due-diligence

Having worked on several Commercial Due Diligences myself both on the sell-side (at adVentures) and buy-side (at Strategy& ), I have combined here a list of models, frameworks and templates for Strategy Consultants, which can be specifically pertinent in a CDD. More will be added progressively.

The current list of models, frameworks and templates focuses on:
- Target Screening (pre-CDD) - perfect to introduce the deck
- Market Analysis
- Market Positioning / Competitor Analysis
- Market Mapping / Industry Landscape
- Pricing Analysis
- Strategic Planning / Business Modelling
- Marketing /Customer Analysis
- Risk Analysis

🎯 TARGET SCREENING:

✅ McKinsey's Strategic Control Map (https://www.eloquens.com/tool/k9YbHZ81/strategy/strategic-planning-templates-models/mckinsey-s-strategic-control-map-framework-model-template )

✅ M&A Buy-Side Target Screening Nine-Box Matrix (https://www.eloquens.com/tool/QADPSr4E/strategy/m-a-target-screening-best-practices/m-a-buy-side-target-screening-nine-box-matrix-powerpoint-excel-model )

✅ Due Diligence Targets Shortlist (https://www.eloquens.com/tool/PRx4CB2v/strategy/due-diligence-templates/due-diligence-targets-shortlist-powerpoint-template )

🏛 MARKET ANALYSIS:

✅ Porter's Five Forces (https://www.eloquens.com/tool/LQlESvak/strategy/porter-s-five-forces-templates/porter-s-five-forces-framework-strategy-consulting-powerpoint-templates )

✅ PEST & PESTLE Analysis (https://www.eloquens.com/tool/qJBdTQrp/strategy/pestel-analysis-templates/pest-pestle-analysis-powerpoint-template )

✅ Accenture Disruptability Index Matrix Template: (https://www.eloquens.com/tool/NkB0twq3/strategy/market-analysis/accenture-s-four-periods-of-industry-disruption-matrix-template )

🏆 MARKET POSITIONING / COMPETITOR ANALYSIS:

✅ Market Positioning VS Competition (https://www.eloquens.com/tool/BwwpTMMz/strategy/market-analysis/market-positioning-vs-competition-industry-template-four-quadrant-matrix-slide )

✅ BCG (Boston Consulting Group) Growth-Share Matrix (https://www.eloquens.com/tool/RqG1U34Y/strategy/market-analysis/actors-competitors-market-mapping-with-the-bcg-boston-consulting-group-growth-share-matrix-powerpoint-template )

✅ Competition Feature Comparison (https://www.eloquens.com/tool/0yy8uYYE/strategy/competitor-analysis/competition-feature-comparison-template-slide )

✅ Market Mapping/ Industry Landscape Template (https://www.eloquens.com/tool/D1wzcJdG/strategy/market-analysis/market-mapping-industry-landscape-template )

🤑 PRICING ANALYSIS:

✅ Pricing Positioning - Industry Competitor Analysis (https://www.eloquens.com/tool/1zQpfGA0/marketing/pricing/pricing-positioning-industry-competitor-analysis-template-slide )

✅ Kotler's Quality vs Price (https://www.eloquens.com/tool/LQjYCv83/marketing/pricing/kotler-s-quality-vs-price-nine-box-matrix-template )

✅ Bowman's Strategy Clock (https://www.eloquens.com/tool/kMPkuJ2p/marketing/pricing/bowman-s-strategy-clock-template )

📈 STRATEGIC PLANNING / BUSINESS MODELLING:

✅ McKinsey’s Portfolio of Initiatives (https://www.eloquens.com/tool/Vv5aUgZn/strategy/strategic-planning-templates-models/mckinsey-s-portfolio-of-initiatives-framework-template )

✅ Ansoff Matrix Framework - Product/Market Expansion Grid (https://www.eloquens.com/tool/VDq8iYl2/strategy/ansoff-matrix-templates/ansoff-matrix-framework-product-market-expansion-grid-powerpoint-template-nine-box-four-quadrant )

✅ Business Model Canvas (https://www.eloquens.com/tool/RqD1F3LY/strategy/business-model-canvas-templates-and-methods/business-model-canvas-powerpoint-template )

✅ McKinsey's Strategic Three Horizons Model (https://www.eloquens.com/tool/MdNgh891/strategy/strategic-planning-templates-models/mckinsey-s-strategic-three-horizons-model-framework-template )

✅ SWOT Analysis/Matrix (https://www.eloquens.com/tool/vv9mCVKN/strategy/swot-analysis-templates/swot-analysis-matrix-strategic-planning-powerpoint-template )

✅ Porter's Generic Strategies Matrix (https://www.eloquens.com/tool/nN2XTgVl/strategy/competitive-advantage-strategies/porter-s-generic-strategies-matrix-template )

✅ ADL (Arthur D Little) Strategic Condition Matrix Framework (https://www.eloquens.com/tool/9GDMfgkd/strategy/strategic-planning-templates-models/adl-arthur-d-little-strategic-condition-matrix-framework-template )

😊 MARKETING/CUSTOMER:

✅ Competitor Analysis - Net Promoter Score (NPS) (https://www.eloquens.com/tool/9QkqFaq2/strategy/competitor-analysis/competitor-analysis-net-promoter-score-nps-powerpoint-slide-template-excel-model )

😱 RISK ANALYSIS:

✅ Strategy & Risk Management Framework - EIP (Easter Island Pentagon) (https://www.eloquens.com/tool/ZvLRIbVp/strategy/due-diligence-templates/strategy-risk-management-framework-eip-easter-island-pentagon-powerpoint-template )

✅ Risk Analysis Matrix (https://www.eloquens.com/tool/XL38ugnG/finance/risk-analysis-modelling/risk-likelihood-consequence-assessment-matrix-template )

Should you have any questions on using this top tier Buy-Side Commercial Due Diligence Framework, Templates and Models Bundle, you're welcome to reach out to me via Private Message (also if you have ideas for new slides to include!)

Good luck!
- Tim

This Best Practice includes
23 Commercial Due Diligence Models, Frameworks and Templates with Associated Methodologies