Commercial and Technical Due Diligence Process for an Industrial Company Targeted by a Private Equity Fund
A detailed commercial and technical due diligence process was conducted for an industrial company that a private equity fund was planning to invest in.
When evaluating the commercial activities and market potential of the company:
- The company’s activities, products, and their position within the current product lifecycle,
- The growth potential of its products and services in the current market,
- The firm’s capability to manage complexity in its products and services from a strategic perspective, along with additional organizational requirements,
- Competencies and competitive advantages relative to the competitive landscape in the market,
- Potential of existing markets and opportunities for market diversification in exports,
- Various strategic actions to make the competitive advantage sustainable,
- Opportunities for product portfolio expansion as well as simplification
were thoroughly assessed and evaluated based on quantitative data and industry realities.
Parallel to these commercial assessments, a detailed evaluation was also conducted for the company’s technical conditions.
Regarding the company’s production activities and technical capabilities:
- Production activities, core production cells and/or production lines, and capabilities,
- Capacities of production areas and capacity utilization rates,
- Activities related to Total Quality Management (TQM) and opportunities for improvement,
- Efficiency improvements required to achieve the targeted production increase and factors causing capacity losses in production,
- Improvements needed to perform capacity and value-added growth calculations through alternative methods,
- Actions to strengthen the integration between sales and production operations,
- Measures to enhance activity-based costing practices and improve data quality
were deeply analyzed and connected to quantitative insights gathered from company managers and experts.
All findings and evaluations were summarized and presented to the companies’ boards of directors and key senior executives through comprehensive reports supported by data analysis, process flow analysis, and graphical representations. The actions required for improvements were structured as projects with a defined timeline.
