Commercial DD qualitative vs quantitative

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This topic contains 5 replies, has 6 voices, and was last updated by  Jerome Baumgartner 2 weeks, 4 days ago.

Viewing 6 posts - 1 through 6 (of 6 total)
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  • #118694

    Ian
    Participant

    Hi all,

    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?

    Many thanks
    Ian

    #119229

    ShaySheri McCarthy
    Participant

    The quality of the DD depends largely on the experience and expertise of the DD practitioner in question.

    #119325

    Ian Smith
    Participant

    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.

    #119645

    William Venus
    Participant

    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.

    #120992

    Meshal Alshammari
    Participant

    I agree with you on this point, Commercial DD can lean on some financial figures but ultimately it has to come back to the strategy of the company and their envisaged plans going forward

    #121001

    Jerome Baumgartner
    Participant

    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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