Acquisition Due Diligence

Helping you to successfully evaluate a target acquisition in today’s digital world

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Your Needs

Effective due diligence of any prospective acquisition has become increasingly complex, as factors influencing the attractiveness of a given target have changed dramatically, requiring additional insight beyond financial performance, to include:

  • Market environment

  • Customer experience

  • Go-to-market, value proposition and trading capabilities

  • Technology platforms and processes

  • Digital maturity

  • Organisational environment

  • Key customer, partner and supplier ecosystems

  • Operational effectiveness and efficiency

Our Acquisition Due Diligence Service

Is aimed at Private Equity and Corporate Finance firms who require proven expertise to aid them in the due diligence process of a target acquisition, sourced from a deeply experienced partner sensitive to the pace of the overall process.

Our approach is also modular to allow clients the flexibility to select just those modules they need to augment their own evaluation process and capabilities:

  • Module 1

Review of the market environment the target is operating within and the relative strength of its positioning.

  • Module 2

Evaluation of the end-to-end customer experience and its impacts to the business model.

  • Module 3

Clarity on the effectiveness of the company’s go-to-market, value proposition and trading abilities.

  • Module 4

Analysis of the technical capabilities, platform, processes and environment.

  • Module 5

Audit of the company’s digital maturity focusing on go-to-market approaches, trading assets (website, applications), and operations.

  • Module 6

Assessment of the organisation from the human angle.

  • Module 7

Insight on the company’s critical customer, partner and supplier ecosystem.

  • Module 8

Review of the operational processes and adaptability.

Each module is typically conducted over a 10 working day sprint, concurrently as required. Outputting clear insights on strengths, weaknesses, opportunities, risks in mission-critical areas. Elements having a material impact on the targets viability and price.

iprism logo

Evaluation of the iPrism Insurtech business for its Private Equity owners, in core areas of ‘customer experience’ and ‘technology’. This evaluation was used to inform the decision to whether to invest in the turnaround of the organisation.

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Over ten working days evaluation of value proposition, technology and operational environment of this mid-tier payments business before it was acquired by Kalixa Payments Group. The findings were used by Kalixa’s shareholders to agree on the acquisition and inform the price.

DWG team members have been deeply involved in numerous due diligence processes on companies, large and small, such as:

Acquisition Due Diligence Modules in more depth

Module 1: Market and Positioning Evaluation

  • Review of critical market characteristics in current operating sectors and geographies to determine future growth prospects and risks.

  • Analysis of the company’s positioning within its markets and its indicative ability to grow.

  • Clarity on opportunities and threats across geographies and sectors; analysis of the company’s ability to scale, likely rate, and any potential investment needs.

Module 2: Customer Experience Review

  • End-to-end evaluation of the company’s ‘customer experience and success’ at all stages.
  • Mapped to ‘business model’ to highlight impacts and benefits to revenues and costs.

Module 3: Go-to-Market, Value Proposition, and Trading capabilities Analysis

  • Review of organisation’s current and potential routes to market and performance against best practice. Indicative ability to scale and ROI effectiveness.
  • Value proposition analysis – uniqueness, defensibility and fit to target customer need.
  • Insight on the effectiveness of trading capabilities and inherent flexibility to changing market conditions.

Module 4: Technical Environment Evaluation

  • Analysis of the target’s technical environment; technologies, platforms, partners, commercials, skills, processes, regulative.
  • Strategic strengths, cost basis and risks.

Module 5: Digital Readiness

  • Review of the digital readiness of the organisation.
  • Go-to-market approach, digital trading assets (websites/apps), operations and skills. Measured versus best practice giving digital readiness score.

Module 6: Organisational Insight

  • Assessment of the target company’s human capital in terms of shape, size, skills and culture. Strengths, weaknesses, risks – at all levels.
  • Measured against strategic objectives, market best practices and environmental dynamics.

Module 7: Key Customer, Partner and Supplier Ecosystem Review

  • Review of key customer, partner and supply relationships to understand scaling flexibility, income defensibility, cost structures, strategic adaptability and risks.

Module 8: Operational Effectiveness and Efficiency Analysis

  • Insight on the operational strengths and weaknesses of the businesses.
  • Highlighting opportunities where costs could be saved (and how), additional margin can be acquired and scaled, and where operational flexibility may be improved.
indicative pricing

The Benefits

Clear Answers

Strengths and weaknesses of each area selected. Highlighting opportunities, risks and areas where additional investment may be needed. Influencing the ‘buy’ decision and pricing.

Easy to Digest Format

A clear report format highlighting approach, insights and answers.

Speed

Our methodology approach for each module, combined with our experience means we can deliver insights quickly and efficiently. Perfectly aligned to your timelines.

Flexibility

Our modular approach allows our clients to chose only the modules they require. The approach to each module is also flexible to time and budget requirements.

Market-leading Value

Underpinning DWG is a powerful and innovative ‘consulting business model’ which allows us to provide our services at market-leading rates.

From Proven Expertise

Each member of the DWG delivery team has at least 15 years experience in each module area.

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Practice Leadership

Andrew Salmon
Andrew SalmonSenior Partner
For more information please contact Andrew Salmon