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when conducting the commercial DD, I believe it’s very crucial to obtain the contract between the targeting company and the suppliers in order to comprehend how the business is running and to know inherited risks. Are you agree with me?
Not necessarily. If you have better contracts of supplier, e.g. utilities, insurance, you can/should terminate the contracts and align. It all depends, but from a cost saving point it is worth having a close look in all contracts and see where you get the best deal
It is crucial to review the contracts before deciding whether to maintain them or not. After review, if it is determined that that is the best deal (post-acquisition), then the contract should be upheld, else the parent company can look around for other suppliers.
I think there will always be some overlap between commercial DD and legal DD, and for that matter, the different types of DD should be considered as parts of a bigger whole and not individually. On that note, where the commercial DD uncovers third party involvement, it will be important to consider what contracts are in place and how it impacts the acquisition.
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