What if you knew…
How to uncover information that improves your acquisition valuation accuracy?
How to increase the valuation by understanding why customers do business with a company and not a competitor?
The challenges faced post-acquisition integration and how to handle them?
The future revenue stream by measuring customer loyalty?
Is the acquisition of a new brand going to require significant effort to integrate with your existing brand?
The CSM F.A.C.T.O.R.
As an outsourced partner, we conduct the research and provide the analysis; acquirer can focus on the transaction.
In-house teams lack the depth of approach to probe and produce actionable information.
CSM collaboratively develops a brief, highly focused survey to obtain insightful and meaningful responses from the customer base.
Typically a 3-4 week process with information available inside of week 2.
Customers speak more honestly and candidly to a third party.
The larger the sample size, the higher the reliability of the results. CSM uses a wide range of research tools and survey methodologies to yield the highest possible response rate.
The Customer is the Most Valuable Asset
Forward-looking due diligence seeks to understand why customers chose to write checks to the Company, to be sold or acquired. You MUST understand why the customer does business with the Company to have the most accurate and complete assessment of the asset value. Traditional due diligence focuses on past financial performance — a look in the rear-view mirror.
- Identify risks/strengths of future revenue
- Gauge operational strengths and weaknesses
- Assess competitive threats
- Measure strength of customer relationships
- Reduce risk of underpricing/overpricing transaction
Post-Acquisition and Integration:
- Outline a path for organizational improvements
- Establish a baseline for continuous assessment of customer satisfaction and loyalty
What customers say:
“We use CSM for acquisitions, and to vet out what the customers’ opinions are of the companies that we’re looking to acquire. The questions are very relevant to all the informatioin we’re trying to establish in terms of lost business, good supplier, bad quality, and so on, and what is needed to improve it. They give us everything that we need to know.”
Dusty McClintock, VP/GM, Industrial Products Worthington Indistries