Commercial Analysis of Acquisition Targets in the Chemical Industry
Cogency provides Commercial Due Diligence services (CDD) to potential acquirers of chemical sector businesses (see Our Clients).
We assemble a project team for each assignment, equipped with the optimum mix of expertise, experience and industry knowledge; and we tailor our approach and work programme for the individual assignment.
See also What Is “Commercial Due Diligence”?
Our CDD work can cover analysis of all or any combination of the following topics, and within each topic we can undertake a broad appraisal or focus on a few specific issues of particular interest or concern:
- market potential (including downstream demand drivers, decision-making in the value chain, competitive dynamics, transactional customers’ requirements, cost pass-through etc)
- regulatory issues
- technology trends and developments
- the company’s market position
- operational issues
- supply side dynamics, security and cost control
- downside risk – see “Sustainability of the current business”
- management capabilities
- internal organisation: structures, commercial processes, culture, management style, coherence & integration, the product development pipeline
- management’s strategy for the business
- upside potential – justification for the acquisition, see “Validating the equity story”
- see exit analysis
Our work content and programme depends on various factors, including:
- the level of understanding of the business our client already has
- the quality and detail of information provided by the vendors
- the access permitted to the company by the vendors
- whether our client wishes us to avoid talking directly to the target’s customers and suppliers
- the timescale of the sale process
The output of a CDD project is usually a written report, often plus a ‘key points’ presentation; we are sometimes requested by our clients to make a presentation to third-party investors.