M&A Support
Strengthening M&A outcomes with commercial clarity
Commercial Due Diligence
Target Screening & Selection
Commercial Due Diligence
In mergers and acquisitions, private equity and venture capital firms typically conduct detailed investigations into a company’s financials and product performance. However, full commercial due diligence is often overlooked, which can lead to unexpected findings or costly surprises about the true growth potential once the deal is closed.Many M&A projects underperform because of weak customer experience, hidden client concentration, or overestimated sales and marketing capabilities.
To enhance M&A outcomes, commercial due diligence should be conducted alongside financial and technical analyses. This process evaluates the target company's overall commercial excellence, extending beyond basic metrics such as market size or product performance.
Key areas of assessment include:
- Level of customer experience (CX) and factors influencing customer attrition
- Credibility and accuracy of growth forecasts
- Quality and reliability of the sales pipeline, including forecast precision and conversion rates
- Advancement of demand generation initiatives
- Structure of the commercial organization and clarity of roles
- Degree of customer concentration and associated dependencies
- Opportunities for cross-selling and upselling
- Structure and effectiveness of sales compensation and incentive programs
- Adoption of proven sales methodologies and playbooks
- Competence and experience of the commercial team
- Utilization of CRM, service, and marketing platforms
A strong commercial due diligence not only validates the growth story but also challenges key assumptions. It checks whether expected synergies are realistic, whether the sales organization can actually deliver, and whether risks like churn or (over)reliance on a few customers are properly managed.
Venturise supports PE and VC firms in defining the right scope for each project. These are short and focused engagements that enrich the overall due diligence process. The outcome is a clear view of the target’s level of Commercial Excellence, the key challenges for success, and if and how they can be addressed after acquisition.
Clarity for Smarter Investments
Commercial DD subjects
Customer Experience (CX) and churn drivers
We analyse how customers experience the brand throughout their journey and what drives retention or churn. We help to identify underlying issues in service delivery, onboarding, or value perception that could affect revenue growth. A high CX level often signals a mature commercial organization with long-term potential; a low CX level would be a strong warning sign during M&A.
Realism of growth projections
We validate whether (TAM/SAM/SOM) growth expectations are supported by data, market evidence, and internal capabilities. Many forecasts rely on assumptions that ignore market saturation or team bandwidth. By stress-testing projections, we ensure growth targets are achievable and credible.
Sales pipeline quality and forecast accuracy
We examine the composition of the pipeline, win rates, and deal velocity to assess overall commercial health. Forecast accuracy provides insight into the team’s operational discipline and the reliability of reported numbers. Beyond the forecast, we analyse key conversion rates from raw lead to MQL, SQL, and ultimately closed deal. A low inflow of MQLs often signals weaknesses in marketing and demand generation, while poor conversion ratios highlight structural bottlenecks that limit revenue growth potential.
Demand generation maturity
We assess how marketing and business development create, nurture, and hand off leads to sales. A mature demand engine shows a clear rhythm of (gated) content, campaigns, and automatic lead scoring that drives consistent pipeline creation. Weaknesses here often explain unpredictable growth.
Commercial organization structure and quality
We determine if the target's commercial organization is buit around best-practices. Are key functions such as Sales Operations, Customer Success, and Service in place and effectively aligned. Is the marketing team setup to drive the right amount and quality of MQL? We also review reporting lines and leadership setup; for example whether a single executive is accountable for go to market performance and revenue growth. A fragmented organizational structure often results in unclear ownership and limits scalability.
Customer concentration and dependency
We identify the extent to which revenue depends on a limited number of clients or sectors. High dependency increases acquisition risk, especially when key contracts are short term or unstable. Balanced portfolios improve deal resilience and valuation.
Cross sell and upsell potential
We explore the potential to expand revenue within the existing customer base through complementary products or services. This is a key indicator of unrealized growth capacity. Understanding these levers helps forecast post-merger synergies with greater accuracy. Including cross and upsell capabilities we analyse how companies can augment their offerings with the help of businesspartners. An undeveloped partner eco-system will hinder growth.
Sales compensation and incentives
Poorly aligned compensation plans can lead to internal competition, margin erosion, dissatisfied sales teams, and unhappy customers. We review whether compensation is based on ACV bookings, revenue, or margin, and whether payouts are made instantly or upon go live. In many cases, a mix of factors is used, but not always the right one to drive sustainable growth. Misaligned incentives can also harm ecosystem and partner development. Effective compensation plans reward collaboration and long term performance.
Methodologies and playbooks
We assess whether the organization follows a consistent and documented approach to sales execution. Strong commercial playbooks provide structure for scaling and onboarding new hires. We also evaluate the use of proven sales methodologies (such as SPICED and MEDDPPICC) and structured account planning practices. These frameworks bring discipline to opportunity management and ensure a shared language across teams. A lack of methodology often leads to unpredictable results and weak forecast control.
Use of CRM, service, marketing systems
We analyse the setup, data integrity, and adoption of key commercial systems. Integrated, well-used platforms (Hubspot, Salesforce, Microsoft Dynamics etc.) provide transparency across teams and ensure data-driven decision-making. Poor system use often conceals pipeline risk or inefficiencies that affect growth.
Spot Potential, Drive Growth
M&A Target Screening & Selection
Effective M&A starts with knowing which targets truly create commercial value. At Venturise, we help investors and acquirers screen and prioritize potential targets that combine growth potential with proven commercial strength.
Through our experience, we quickly identify where upsell and cross sell opportunities exist and which partnerships already show strong cultural and operational fit. We also assess how well commercial systems, processes, and reporting structures align with the acquiring company’s standards, highlighting where adaptation may be required.
Beyond market and financial data, we evaluate the strength of the commercial teams (their structure, leadership, and ability to deliver consistent customer outcomes). We analyse whether a company is known for high customer experience (CX) and loyalty, or whether weaknesses in client retention may threaten growth after acquisition.
Apart from financial performance of targets, we examine areas such as brand perception, market credibility, pricing strategy, and how effectively sales and marketing collaborate to drive sustainable demand. Together, these factors reveal which targets have the commercial maturity and cultural readiness to thrive post-acquisition.
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