TABLE OF CONTENTS In a traditional due diligence exercise commercial due diligence forms the practical aspects of the transaction, some of which have already been considered in CHAPTERS 1 and 2. The target or candidate company is assessed in the context of:
its competitors;
the market;
brand value;
product image;
the integration of the workforce and their interaction at different levels; and
business goals and objectives.
As a matter of ongoing due diligence and prudent commercial practice a business must, of course, constantly monitor its competitors and the market in general. Media headlines are often filled not only with stories of failure in this respect but also likely acquisition moves, as well as sensitive sector comment. This handbook as a whole deals with commercial due diligence and corporate governance, having regard also to the management of risk this Chapter focuses on the latter by way of practical case studies in selected sectors. Many of the issues are, of course, relevant for many business sectors. Nevertheless, it must be emphasised that this Chapter does not intend to address how a business should deal with the competition. Instead it approaches the topic by considering sectors that are both highly competitive and risk driven.
It has been noted in earlier chapters, specifically in CHAPTER 5 that in today's fast moving business world a business can be set up, grow, be acquired or fail in a short period of time. A vivid illustration is the information technology (IT) sector, which was the subject of...
