The “Commercial Due Diligence (CDD)” session, the third of a three-part training session that focuses on the practice of Due Diligence, was hosted last month. The training sessions were part of the Association’s initiatives under the training programme, “Best Investment Practices: Responsible Investing in Private Businesses.”
The three-session Due Diligence training was enrolled in by 29 individuals, representing our ideal target audience — member investors of MPE&VCA, the securities exchange, corporates, direct investors, and consultants.
The session allowed attendees to put themselves in the shoes of an investor planning to use CDD as a tool to assess the strength of a business in preparation for a proposed acquisition, investment in or even sale of a company.
Carrying out a proper CDD as part of a vendor due diligence work for a diagnostic deal offers a thorough understanding of the true opportunities and risks of a target business, thus, greatly improving the chances of signing off on a successful deal.
Chris de Lavigne, M&A Partner, Strategy, Risk & Transactions at Deloitte – in his lecture on “Commercial Due Diligence” – shared useful learning points and interesting practical experiences pertaining to the conduct of commercial diligence.
The following outlines the key learning points from his lecture.