Business Due Diligence
Our approach is structured in 4 key modules:
Review of client’s internal data and management interview
At the beginning of the project, VVA reviews the data provided by the client and collected during the interviews with the company management, with the sole objective to gather their perspectives on the market dynamics. This will represent only the first step of our work that will be built though the external interviews and analysis, detailed below.
Review and analysis of published sources:
The independent research of market and competitive data is paramount for a robust assessment of the investment. A distinctive element of VVA approach is the deep analysis of information and data collected from reliable sources of information. This phase allows a preliminary review of market and competitive findings that we then validate in the course of our “anonymous” external interview program. A sample of the sources that we draw on includes: industry and specialised journals; trade associations report and newsletters; on-line market information databases; company accounts; brokers reports, etc.
External interviews with experts, customers, competitors, distributors and other relevant players in the value chain:
VVA has the capabilities to carry out in Europe, US and Asia in-depth, “anonymous”, senior level interviews: our experience shows that this is the best way to obtain unbiased information and views. The issues that we discuss in the course of the interview program generally include: market dynamics; drivers underpinning market trends; expected price and volume forecast; raw material evolution; industry key success factors; competitive positioning (strengths and weaknesses by player) and Target distinctive elements; distribution channels and their expected evolution; purchasing criteria; growth opportunities and threats; plausibility of the business model.
Business Plan assessment and summary of findings:
The assessment of the business plan will be made by a thorough analysis of the assumptions applied to prepare the plan, against the market and competitive dynamics. In this module we challenge the management perspectives against the outcome of our independent market and competitive research and analysis. We specifically segment the (volume and price) revenue assumptions by product, by country, by distribution channel, as appropriate. Similarly we go in detail on the raw material and other cost of goods sold and we look at the plan implication on the organizational model and structure. The outcome of this module is our assessment on the sustainability of the operating results foreseen in the plan.