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Commercial Due Diligence: Key Questions

by ed — last modified 2008-09-01 09:47

The commercial due diligence process has some difficult questions to answer. These include:

Demand
  • Is the demand in the market future-proof?
  • Is the company operating in the right market segments?
  • Will the introduction of a new technology affect demand? (If so, how?)
Customers
  • How strong are the company's relationships with key customers?
  • Will their buying behaviour change in the next five years?
  • Can a larger group of customers be reached with the existing distribution channels?
Products
  • How do the products rate in comparison with the competition?
  • How does the product lifecycle vary?
Business plan
  • Will the company be able to accomplish its forecasts?
  • How robust are the assumptions that underlie these forecasts?
  • To what extent does the business plan take account of changes? What changes would substantially affect the business plan?
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Androschin & Partner accomplished Commercial Due Diligence for Deutsche Beteiligungs AG

Deutsche Beteiligungs AG acquires Romaco group

Management buyout of manufacturer of packaging and food processing equipment

Frankfurt am Main, 31 March 2011. Deutsche Beteiligungs AG (DBAG) and its managed closed-end private equity fund DBAG Fund V announced today that they will acquire the Romaco group (“Romaco”) in a management buyout. DBAG and seller Robbins & Myers Inc., a NYSE listed company headquartered in Dayton, Ohio, USA, signed a contract to that effect. The purchase price for the company is 61 million euros. DBAG will invest some eight million euros from its balance sheet and hold a 19 percent interest in Romaco. DBAG Fund V and Romaco’s management will acquire the remaining shares.

press release