What are your thoughts on the growing importance of ‘science’ based Commercial DD and do you agree it is becoming less of an art and moving more towards a purely quantitative exercise. Unlike the FDD and Operational DD which have always been quantitive and looking backwards whereas in my experience Commercial DD historically has largely leaned towards qualitative projections. Have you found this is changing with higher expectations on numbers and less on strategy?
I could agree with the original post. especially when looking into KPC’s. this is science, and essentially fact, based analysis that can be used to measure the sustainability of a business model. And so, areas of required improvement when compared to marketing benchmarks where improvements may be required – this can then be used as leverage for negotiation as there will be a cost for the these improvements to be made.
I would say that the challenge lies in the person leading the commercial DD and their experience. It can be challenging when person leading has neither the industry experience or team to support the strategic rationale is very quantitative as it can provide blind spots that might arise post closing.
When looking at the CDD presentation and the big data activities connected with the social networks assessment, I am however wondering if some fraudulent manipulations could be produced to impact the ability of the CDD team to produce a fair assessment. This source of data is much more fluid than the traditional ones and should be carefully considered.
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