Cross-border commercial due diligence for private investors
If you are going to invest in a company with international expansion plans, you want to make sure that their product or service has good chances of being successful in the countries where you have ambitions.
Especially for companies with plans for global growth, it is important to know whether they can thrive in other markets than their home market. And how much investment is needed for new market entries.
With teams around the world in over 30 countries our lead specialist Alfred Griffioen can help you get the right information to base your decisions on.
Research topics for new markets
Where it comes to assessing the viability of a product or service in a new market, we always look at the following aspects:
1. Regulatory compliance
Can the product be imported and sold in the country, what are import duties and are there any restrictions on service delivery? What are the investments to comply to all regulations?
2. Market needs
Is there a genuine demand for this product or service in the market and which aspects are decisive for the customers? What are common channels for marketing and sales?
3. Competition
How fierce is the competition and is there a clear market leader? Is there room for a new entrant and what happened to other companies trying to penetrate the market?
4. Investments
What steps are needed to enter the market and what are the related costs. How quickly can you expect revenue and what is a reasonable pay-back time?
We make these assessment with local people in over 30 countries around the world, who report in a similar way. This way you get a good comparison and you can total up the investments needed for global growth.
Countries where we offer commercial due diligence
America’s
- Canada
- United States
- Mexico
- Panama
- Brazil
Oceania
- Australia
- New Zealand
Europe
- United Kingdom
- Netherlands
- Belgium
- France
- Spain
- Italy
- Germany
- Austria
- Switzerland
- Poland
- Romania
Middle East & Africa
- Turkey
- Jordan
- Palestine
- Egypt
- United Arab Emirates
- Qatar
- Oman
- Morocco
- Tunisia
- Ghana
- South Africa
Asia
- India
- South Korea
- Japan
- China
- Hong Kong
- Taiwan
- Vietnam
- Thailand
- Malaysia
- Singapore
- Indonesia
Comparing performance in existing markets
If the company the we are assessing already has sales in different countries, we can determine distributor performance or sales staff performance.
We do this by correcting the actual turnover with data about:
- the buying power in the market;
- the geographical reach of the distributor or sales team;
- the competition intensity;
- the number of years active in the market.
Combining the data of the various countries over time leads to a growth curve where overperformers and underperformers can be easily identified.
We can then do selective interviews what causes any underperformance, and you can take corrective measures.
A curve like this also helps to estimate the potential in a new market.
Drafting a growth strategy
Commercial due diligence does not need to be reactive. As an investor, you also want to direct a company’s management to new growth opportunities.
Where it comes to new markets we can draft the outline for a market penetration plan. And we can search specifically for synergies with your other investments around the world, if these are related.
This way you can optimize your portfolio and define next acquisition targets.
Use our network for your due diligence
With local people in over 30 countries around the world, we can quickly do a regulatory, market and competition assessment in multiple markets at the same time. Connect with Alfred Griffioen to see what we can do and receive a quotation.
