Due Diligence

Understanding the market dynamics and growth potential is crucial when considering M&A or investment opportunities. Our consultants conduct in-depth market analyses, evaluating market size, growth rates, competitive landscape, customer trends, and regulatory environment. By assessing market attractiveness, we help clients identify promising market segments, potential revenue streams, and growth opportunities. This insight enables clients to make informed decisions and align their strategies with market dynamics. In a recent case, an industrial equipment manufacturer took our help in assessing product market fit for a technical product in solar lighting before investing in a European startup. Our team understood the gist of the technology and its limitations and applicability in India, identified competing products, worked on unit economics for the consumer, and spoke to experts to arrive at the right price points for the Indian market. The analysis helped the client to arrive at the right investment decision.

Evaluating the financial performance and position of the target company or investment opportunity is essential. Our consultants conduct financial benchmarking, comparing key financial metrics such as revenue, profitability, cash flow, and financial ratios against industry peers and market standards. By identifying strengths, weaknesses, and areas for improvement, we help clients understand the target’s financial health and value potential. This analysis assists clients in negotiating favourable deal terms and making informed investment decisions. Qwixpert has a very refined and established methodology to arrive at financial benchmarking. Our team has built a database of financials for over 1,000 Indian companies across consumer and industrial products for over 6 years. Our team has classified the data by industry, operating model, geography, and other factors. Often our clients seek our help to get financial benchmark figures to benchmark their companies and any target companies they intend to acquire.

Assessing the operating performance of the target company or investment opportunity is crucial for identifying potential areas for improvement. Our consultants conduct operational benchmarking, comparing key operational metrics such as productivity, efficiency, supply chain management, and quality standards against industry benchmarks. This analysis provides insights into operational strengths, weaknesses, and opportunities, helping clients identify synergies and operational improvements to drive value creation. Given our teams’ experience in executing projects over the years and our network of industry experts, we help our clients execute quick benchmarks of operations practices, ratios of inventory, cash cycle, sales team for the turnover, headcount by function for the operating model, and scope to improve productivity. Such operational benchmarking has often helped evaluate the target’s manufacturing processes, supply chain efficiency, and product quality. Our analysis reveals opportunities to streamline production, optimize the supply chain, and implement quality management systems. By leveraging these insights, our clients were able to decide on the investment and leverage the investment to derive more value from it.

Assessing potential operational risks associated with the target company or investment opportunity is crucial for risk management and informed decision-making. Our consultants thoroughly evaluate operations risks, including supply chain vulnerabilities, regulatory compliance, product quality and safety, and operational dependencies. Identifying and analysing these risks, we help clients develop risk mitigation strategies and ensure operational resilience. In an investment opportunity in the logistics sector, we assessed operations risks related to workforce availability, accessibility, environmental regulations, and hazardous material handling. Our analysis identified potential compliance issues and risks associated with safety protocols. By developing robust compliance frameworks and implementing safety measures, the investor minimized operational risks, ensured regulatory compliance, and protected the investment.