Project example: Commercial Due Diligence – Construction

Situation

• Local B2B wholesaler of Home Improvement supplies serves clients across 5 channels: large DIY-chains, specialist Wholesale & Trade, Professional End-Users, Other Non-Food Retail, and E-Commerce
• Currently owned by a Private Equity fund, intention to sell shares to an investor

Actions Proost Ventures

• Define correct segmentation of wholesaler’s product and client assortment to fully understand market drivers, pricing, trends, growth, and risks
• Lay-out of the market size, market attractiveness and key drivers for the core segments
• Analyse the sustainability and profitability of the current distribution channels (both sourcing and selling)
• Compare competitors’ business models, growth, market share, margins, and product assortment to target in order to assess competitive positioning of target
• Assess the revenue plan in comparison to market and competitive development and individual product and sales initiatives at existing and new clients
• Analyse strengths and weaknesses of target

Results

• Successfully performed buy-side Commercial Due Diligence in 2 weeks

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