Why Should Investors Care About CDD?
A Commercial Due Diligence (CDD) can find all ‘skeletons’ of the b2b sales ‘closet’ and hence lower your investment risks.
Think of irreplaceable account managers, bribed client purchase officers, unofficial sales force hierarchies, verbal promotion promises and many other important details of a b2b sales structure at your target company! (A standard Due Diligence is not designed to show you such nitty-gritties of b2b sales!)
A good Commercial Due Diligence is basically a SWOT analysis of b2b sales:
You can understand what works according to industry best practises to know where to direct your fresh money at the sales department.
You need to be aware and get rid of the black holes of your b2b sales (unscalable lead sources, wasting sales processes, personal dependencies, toxic opinion leaders etc.)
By a decent CDD you can find hidden potentials of undiscovered lead sources, buyer persona adjustments, sales work-flows improvements, intangible motivators, verified needs for sales personnel etc.
You must know your ‘Cost of Not Acting’ in b2b sales! If you are investing others’ money you can be held even legally accountable of not knowing the odds of losing key accounts, key stake-holders or any major threats of b2b sales results at your investment.
It is worth the time
The ROI of such SWOT analysis is quick and certain as it requires only few days of a senior sales expert and it can also be performed in ‘stealth-mode’.
If you want to do the ‘surgery’ yourself this checklist might come in handy.
But for crypto investors…
As you saw Commercial Due Diligence is a darling in general but according to Forbes.com a proper Due Diligence process is an absolute must for Initial Coin Offering projects.