Using Market research as part of the due diligence process
Anyone knows that acquiring a new company and assimilating it effectively within your business model involves a lot of time consuming ground work if costly mistakes are to be avoided.
The standard process for commercial due diligence would involve a very detailed and meticulous investigation of a company’s financial performance and operating capabilities. And yet, surprisingly, one area that is often glossed over is the company’s existing customer base. But who is better placed to tell you about a company’s real strengths and weaknesses than its customer base?
Acquisition Research - Market Reviews and Customer Surveys
A well designed customer survey can provide invaluable information at grass roots level about a company’s true strengths and weaknesses, as well as shedding light on potential opportunities and threats for the future. Crucially, you can obtain an independent and objective measure of exactly how large and how loyal this customer base truly is. This will allow you to be far clearer regarding the future growth potential and the true extent to which existing revenue streams can be relied upon. Not only this, but such an exercise can provide great insight into the potential future synergies between your own operations and those of your intended acquisition.
Given the risks involved, an investment in some well designed and precisely targeted research information is a small price to pay.