Commercial Due Diligence for a Leading Data and Analytics Company

Client and project overview

• A leading data and analytics company engaged us to perform commercial due diligence (CDD) on a provider of consumer verification, credit, and fraud risk solutions
• We worked on an undisclosed basis to assess the sustainability of the target’s business model and to validate its deal value

Key questions

• What is the target’s position within the competitive landscape for credit risk assessment and for fraud analytics?
• To what extent does the target meet the key purchasing criteria of its existing and potential customers?
• What is the customer perception of the target and its products?
• What are the underlying growth drivers, risks, and regulatory hurdles in the target market?

Our methodology

• To find the answers, we organized an extensive interview program of executives, both market experts and customers, across the Fintech, Credit Card, and Telecom verticals (e.g., LendingClub, American Express, T-Mobile, Verizon)
• We also gauged the target’s financial health with a detailed revenue assessment

Results

• We assessed the target as occupying an established and strong market position and provided recommendations for finetuning its go-to-market strategy
• In light of our work, our client decided to acquire the target company.