Commercial due diligence
Private equity buyout in commercial vehicles
Led commercial due diligence on a middle-market component supplier: market, competitors, customer interviews, forecast validation, and organization.
The acquisition closed.
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05 · Commercial Due Diligence
Know what you are buying before you sign.
Diligence is worth the most when it changes the price or the decision. The work starts from your investment committee's questions, not a standard checklist.
Typical timeline 4 to 6 weeksLed by senior leadership
When clients call
The situations behind this work.
- You have a signed LOI and an exclusivity clock
- Management's forecast looks optimistic
- The target sells into a niche you do not know well
- Your lender or investment committee wants an independent view
Questions this answers
What you will know at the end.
- How big is the target's market, and is it growing?
- Why do customers buy from the target, and will they stay?
- How strong is its position against competitors?
- Is management's forecast achievable?
- Can the organization deliver the growth plan?
- What are the risks, and where is the upside?
How it works
Phases and what each one delivers.
Typical timeline
4 to 6 weeks
Scheduled around your exclusivity window.
- 01
Week 1: Frame the questions
Kickoff with the deal team to agree on the questions that matter for this deal, plus the data request.
You receive: Diligence plan tied to your thesis
- 02
Weeks 1–3: Market and customers
Market sizing and outlook, and interviews with the target's customers and industry experts.
You receive: Market view and customer findings
- 03
Weeks 2–4: Competition and organization
How the target wins against competitors, a site visit, and management interviews.
You receive: Competitive position and organization read
- 04
Weeks 3–5: Stress-test the forecast
Tie each revenue and cost driver to evidence and build base, upside, and downside cases.
You receive: Adjusted forecast and sensitivities
- 05
Final week: Readout
A decision-ready report and discussion with the deal team and, if useful, the lender.
You receive: Final report
What you get
Deliverables.
- Weekly progress updates
- Market sizing and outlook
- Customer interview findings
- Competitive position
- Adjusted forecast with sensitivities
- Final report for the investment committee
Built for deal teams: scoped at kickoff to your thesis, delivered inside the exclusivity window, with findings ready for the investment committee and lenders.
For strategic acquirers, including Japanese-headquartered companies buying in the US, the same work confirms the market and customer story before you commit capital.
Voice of customer
Hear it from your customers, not just your team.
Most growth plans and deal theses rest on what management believes about customers. Voice of customer research tests those beliefs directly: how customers choose suppliers, how they rate you against competitors, and where they would spend more with you.
Decision factors
The criteria that drive purchases, ranked; specification requirements; how suppliers are evaluated and selected; switching costs and loyalty; and who really makes the decision.
Brand perception
First impressions, the value proposition customers actually see, and why they award business to you or to someone else.
Performance and capabilities
How you score on the criteria that matter most, which capabilities customers value, gaps in your offering, and the quality of account management.
Market and opportunity
Customers' own outlook and demand for your products, how well you adapt to change, and specific ways to grow the business with each account.
Competitive position
How customers compare you with your top competitors, what competitors' value propositions are, and gaps no one in the market fills today.
Depth
Interviews
One-on-one conversations with customers, former customers, and prospects. Smaller samples, rich detail on motivations and experience.
Breadth
Surveys
Structured questionnaires for statistical confidence across segments, from dozens of accounts to more than 20,000 respondents.
Where it fits
Built into strategic planning, market research, organic growth, and commercial due diligence, where it becomes customer due diligence on the target.
Example engagements
Related work.
Representative engagements led by Stradaro's leadership in prior roles.
Commercial due diligence
Strategic acquisition in industrial equipment
Led diligence for a corporate buyer acquiring an equipment manufacturer, including customer interviews and purchase-criteria analysis.
The acquisition closed.
Cross-border diligence
Japanese buyers acquiring in the US
Led commercial due diligence for several Japanese-headquartered companies acquiring US businesses in ingredients, distribution, and industrial components.
Findings shaped price and post-close plans.
Stradaro
Strategy · Market Research · M&A Advisory
Senior leadership is on every engagement, from kickoff to final readout. You will hear back within one business day.
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