Ameridan uncovers critical information that resides in the knowledge and perspectives of management, customers, channels, suppliers, competitors and other market influencers. We synthesize these findings with extant knowledge to generate relevant, actionable insights.
Customer diligence is a critical piece of the overall due-diligence process.
For most companies, the existing customer base is the most important driver of value. The nature of the customer mix, the stickiness of the relationships, competitive dynamics, relative power, customer perceptions, and other factors have profound implications for a company’s revenue and margin prospects going forward. Understanding these implications is absolutely critical not only in the diligence process, but in developing strategy post acquisition.
Ameridan has extensive experience in customer diligence across a wide variety of industries. Our customer diligence assignments, usually conducted during the last few weeks of due-diligence, assess the overall stickiness of key customers, identify at-risk relationships, gauge price elasticity, and assess the potential to increase penetration of extant relationships. In most customer diligence assignments we also:
Ameridan’s market diligence work focuses on these three dimensions, assessing fundamental industry structure and dynamics, as well as the target company’s marketing capabilities and its evolving competitive position within the industry.
Although each assignment is unique, addressing client-specified issues, our work typically addresses the following questions:
Most executives are aware of the plethora of studies showing that a majority of acquisitions have been unsuccessful. Although many of these studies have exaggerated true failure rates, it is certain that a significant percentage of acquisitions have not met expectations. And many have been outright disasters.
With that said, there is no doubt that the right acquisition(s) can help companies achieve goals that cannot be achieved in any other way. Simply put, M&A is difficult and risky, but it is a powerful and perhaps indispensable strategic tool.
Ameridan helps clients find, evaluate, and close value creating acquisitions. Our acquisition advisory services include: