CDD(Commercial Due Diligence) & Strategic pricing
When we talk about a successful M&A, it's easy to ask whether the acquisition/disposal was done at a reasonable price, asking a question solely from a financial perspective. However, for a successful M&A, it is important to ask the following questions from a business strategic perspective.
- How will the dynamics in the relevant market of the target evolve in the future?
- How competitive is the target within its market?
- Does the value proposition that the target claims align with our customers or our business in general?
- What synergies can be expected from acquisition, and how much is this value worth?
To answer the above questions, it is required to have a deep understanding of the target business, and a clear direction for operations after acquisition. This often involves a Commercial Due Diligence (CDD) from a business strategic perspective.
Samil PwC's Deal strategy team, by conducting market trend analysis, evaluating the target from a client perspective, and analyzing the target's position in the competitive landscape, analyzes various cost & profit scenarios and focuses on synergy arising in acquisition, supporting the client's investment decision
If the acquisition of the target is taking place in a competitive bidding situation, the team goes the extra mile by covering the evaluation of the expected synergy value from the perspective of competing bidders, determining the necessary "winning price" for successful M&A.
