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Digital Due Diligence to increase ROI at Mergers and Acquisitions

DDD Standard

Digital Due Diligence generates significant value in two key strategic areas:

Developing high ROI digital business models
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Enhancing ROI during mergerds and acquisitions
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In today’s dynamic business landscape, Mergers and Acquisitions (M&A) are key strategies for companies aiming to bridge the digital gap. However, evaluating the digital maturity of a target company presents significant challenges, including understanding the complex and ever-evolving digital market trends that aren't always aligned with traditional distribution channels. Without the right insights, organizations risk missing critical factors that could affect the success of the transaction.

Many companies don't measure digital brand value because they don't understand how it correlates with growth and future revenues. This gives a considerable advantage to those that do measure it and have strategic activities to increase it.

Scope

Our Digital Due Diligence methodology empowers organizations to make informed M&A decisions and maximize return on investment.
Through a comprehensive assessment, we uncover digital risks and growth opportunities that go beyond traditional financial due diligence. By evaluating a target company’s digital status, brand performance, and future growth potential, we help ensure accurate valuations and identify synergies that create long-term value. DDD mitigates risks, improves decision-making, and enhances the potential for operational efficiencies.

Maximizing Value Through Digital Due Diligence in the M&A Process

Typical M&A Process

01

Scouting phase

Identify the most promising companies

02

Shortlisting phase

Ranks companies based on their digital performance

03

Heads of Terms

Initial agreement outline

04

Due Diligence

Financial, legal, commercial review

05

Negotiation - Contracting terms

Terms discussion, contract formalization

06

Agreement

Signing final contract

07

Post-Agreement

Contract implementation, integration

Digital Due Diligence (DDD) brings value at different stages of the M&A process

Before Heads of Terms phase

Case 1
DDD can be applied prior to the Heads of Terms phase, during the initial scouting phase. It helps buyers and investors identify the most promising companies by analyzing market players in the industry.

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Case 2
In the shortlisting phase, DDD ranks companies based on their digital performance and brand value, helping prioritize those with strong growth or investment potential and positive ROI.

During Due Diligence phase

DDD also adds value during the Due Diligence phase, complementing financial, legal, and commercial audits with a comprehensive digital audit. This ensures a more holistic evaluation of the target company.

Case study

Exposing Hidden Digital Financial Potential

Premises
Industry: Pet Care
Type of Business: B2C
Main Challenge: Multiple target companies appeared to be the best fit for the M&A deal.
Goal: Identify the right match in terms of digital potential to differentiate the best company from the top three contenders, all with similar performance on paper.

Applied Strategy
Conducted an in-depth Digital Due Diligence (DDD) on the target companies’ digital assets. Translated the value of each digital brand into financial terms to assess true digital potential.

Results
Discovered a hidden digital strength not reflected in financial statements:
One target company had 4.3x higher digital penetration, based on indexed keywords (by search engines).
This resulted in a higher future ROI from digital marketing (lower customer acquisition costs). 
Increased the overall value of the target company by 17%, making it the most appealing deal with the best value for money.

When is recommended

ACCOUNTS

Service type

Custom Digital Due Diligence for Target Deals

Category or Industry Discovery for Scouting and Comparing Companies

Category or Industry Pulse for Tracking and Evaluating Market Players

Description

This is a customized Digital Due Diligence service specifically tailor to the needs of a target deal. Priced at up to 0.3% of the deal value, this service provides in-depth insights into a company's digital assets, infrastructure, and risks.

The streamlined version of our Digital Due Diligence service that you get in 48-hours.

It covers a high-level performance analysis in comparison to key industry competitors. This initial analysis leverages external data points and insights, so there is no need to share internal information or to provide access to internal data platforms.

Is a subscription-based service that provides monthly or quarterly updates on industry-specific insights and digital key performance indicators (KPIs). This exclusive offering is limited to a maximum of 10 buyers per industry and region, ensuring that our partners receive unique insights tailored to their needs. For example, our subscription for the Fintech Industry Pulse in North America is currently closed after reaching the cap of 10 banks. This approach guarantees that each partner benefits from exclusive, actionable intelligence. Pricing varies based on the industry and the depth of the reports, allowing for customized solutions that meet the specific requirements of each subscriber.

Benefits

- Receive customized analysis specifically aligned with the unique aspects of your target deal
- At up to 0.3% of the deal value, this service offers an economical way to uncover potential risks and opportunities, maximizing the value of your investment
- Gain a comprehensive understanding of the company's digital assets and infrastructure, enabling you to identify hidden risks

- Access detailed analysis of industry players, enabling you to identify and prioritize companies with the highest growth potential and ROI.
- Benefit from a thorough assessment of digital performance, infrastructure, and brand value, providing a holistic view of market dynamics
- Leverage insights to stay ahead of the competition, marketing data-driven decisions that enhance your investment strategy and long term success

- Enjoy unique insights tailored to your industry and region, with a limited subscriber base ensuring you receive actionable intelligence that competitors do not.
- Benefit from monthly or quarterly reports that keep you informed of the latest industry trends and digital KPIs, enabling timely and strategic decision-making.
- Tailor your subscription to meet specific needs, with pricing that reflects the depth of the reports, ensuring you get valuable insights that align with your business goals.

DESIGN INTERACTIONS
DESIGN INTERACTIONS
ACCOUNTS

This is for you if

You are not sure about commiting to a Digital Due Diligence, but you want to evaluate your company and compare it to industry benchmarks through our guided process.

You are ok with slightly self-biased results.

Description

Guided Self-assessment findings on digital performance encompassing webpage performance, social media engagement, organic reach, and brand impact.

Scope

Showcase your high level digital performance (strengths and weaknesses)

DESIGN INTERACTIONS

Key Deliverables

Report highlighting high-Level strategic digital performance compared to industry benchmarks

DESIGN INTERACTIONS
ACCOUNTS

This is for you if

You are considering a Digital Due Diligence, but you want to get a sneak peak on high-level insights.

You don’t want to spend time on our guided self assessment, as you prefer a fully outer perspective first.

Description

The streamlined version of our Digital Due Diligence service that you get in 48-hours.

It covers a high-level performance analysis in comparison to key industry competitors. This initial analysis leverages external data points and insights, so there is no need to share internal information or to provide access to internal data platforms.

Scope

To deliver a high-level overview of strategic opportunities and threats from a digital growth perspective, we will utilize industry benchmarks and external data insights. This analysis will be informed by comparative industry standards and broader market trends, rather than relying on internal data.

DESIGN INTERACTIONS

Key Deliverables

Industry digital growth reportCompetitive landscape high level overviewPreliminary business case

DESIGN INTERACTIONS
ACCOUNTS

This is for you if

You want to take your next strategic decision based on a comprehensive audit driven by data.

You wasted too much time and effort that didn’t bring the envisioned results, and you want to take your digital strategy to the next level.

Description

Comprehensive Digital due diligence involves thoroughly analyzing an organization's current digital landscape, considering industry specifics, brand positioning, and trends, to identify potential growth opportunities and threats, and guide strategic decision-making for a successful digital journey.

Scope

Enable organizations to have unbiased, data-driven and benchmarked competitive insights. To accurately define your current digital status in order to show you potential digital growth paths that are relevant to your situation.

DESIGN INTERACTIONS

Key Deliverables

Digital trends and industry insights
Macro opportunities and impact
Digital landscape report
Digital footprint report
Growth technology audit
Digital brand performance audit
Strategic directions

DESIGN INTERACTIONS
The Digital Due Diligence (DDD) for M&A is structured around four main pillars that provide a comprehensive evaluation of the target company's digital maturity and market positioning.

Approach

1. Digital trends and industry insights
The alignment of the target company with current digital trends, its industry positioning, and potential growth opportunities within the digital landscape are assessed.
2. Marketing technology audit
This audit evaluates the company’s marketing technology stack, its integration, and whether it can support future growth while offering insights into competitors' technology approaches.
3. Brand Performance Audit
The digital footprint and performance are analyzed across key areas such as digital channel performance, lead generation, user experience, and behavioral patterns to provide actionable insights.
4. Technical Audit
This audit focuses on the overall technical infrastructure, ensuring that the systems, processes, and technology are optimized for scalability, efficiency, and long-term growth potential.

Outcome

The Digital Due Diligence for M&A helps minimize the risk of costly mistakes or overlooking critical digital factors that could impact the transaction. By identifying potential deal breakers or hidden risks in advance, it reduces the likelihood of unexpected issues arising post-transaction, enabling the acquiring company to address them proactively.
The DDD also optimizes transactional terms and provides greater negotiation leverage, ensuring that the deal terms are adjusted to reflect the true digital value of the target company.
Ultimately, it delivers an accurate assessment of the target company's digital brand value, enhancing valuation precision and facilitating informed decision-making.

Do you have questions about how Digital Due Diligence could benefit your business?

Visit our FAQ page for detailed answers to common questions and insights into how our DDD service identifies risks, uncovers growth opportunities, and enhances your digital strategies.

Opportunities

Standard Digital Due Diligence

Start your digital future in the right direction, today

Transmission into digital has to grow from the rich ground of analysis and strategy. To provide soil for success, we examine the whys of today to see the hows of tomorrow.

Custom Digital Due Diligence

Master your future digital activities, today

If you already have a well-defined digital strategy, but have difficulties understanding a specific area, then we can assist you in finding clarity. While the core pillars of doing this are similar to our standard Digital Due Diligence, the process is tailored to meet your distinct needs.

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