Investing in businesses built on digital business models requires a new approach to valuation as well as an enhanced form of commercial due diligence (CDD) that account for the idiosyncrasies of digital value chains.
Jointly with the colleagues of our sister firm Valearis GmbH, we comprehensively analyze “digital” targets. Besides “classic” CDD dimensions such as market sizing and forecasting, competitive analysis, analysis of customer structure and behaviour, we focus on key dimensions along the digital sales-marketing funnel. Starting with traffic acquisition and customer service, technical platforms and back-end operations.
We answer questions such as:
- How is brand awareness built?
- How is traffic generated and where does it come from?
- How are prospects converted to customers?
- What is the customer experience like on mobile devices?
- What is the end-to-end customer experience like?
- Which channels and formats are used to communicate with customers post-purchase?
- How responsive is the customer service?
- What kind of technological foundation is the platform built on?
- How will the technological platform be further developed?
- What skills are available in the team today and which skills will be required to achieve growth?