Commercial Due Diligence

   Commercial Due Diligence (CDD) is a kind of service providing a thorough assessment of a target's positioning within its business environment for potential acquirer or collaborator during M&A or Joint Venture transactions. As an essential part of the Due Diligence process, Commercial Due Diligence supports the decision-makers by providing insight on the strategic position, market attractiveness, competitive dynamics, growth opportunities and management team of the target company. The major purpose of conducting a CDD is to strengthen the negotiating position by identifying business risks, addressing valuation. Nevertheless, CDD also contributes to integration and separation planning.

   Our approach is to work closely with our clients and develop customized reviews according to their requirements. For years, Huaran has conducted numerous professional Commercial Due Diligence reviews, providing comprehensive assessments upon the commercial and market dynamics to our clients for their investments. Based on our experience, Huaran team is able to quickly identify potential problems and provide solutions to our clients on a timely basis. 

Core contents of a Commercial Due Diligence

1.       Macro Conditions Analysis (Political Factors, Economics Factors, Social Factors, Technical Factors)

2.       Market Status Analysis (Market Definition, Market Scale, Market Feature, Future Trend)

3.       Competition Landscape Analysis (Competitors, Market Share, New Entrants, Substitute)

4.       Operation Flow Analysis (R&D, Procurement, Production, Logistics, Distribution Channels, Sales, After-sales)

5.       Infrastructure Analysis (IT System, Corporate Culture, Accounting System, Collaboration Mechanism)

6.       Valuation (Synergy Analysis, Valuation of the Business, Integration Solutions)