Diligence Matters Best Practices Briefs

Home   |   Diligence Matters Best Practices Briefs   |   Topics

Customer Loyalty

Authors
Topic: Customer Loyalty
Search
042

The Next Step Beyond NPS (Net Promoter Score)

By Eoghan Bees

A common metric leveraged in commercial diligence – NPS (Net Promoter Score) – is based on a single and simple question presented to users of a good or service: “On a score of 0 to 10, how likely is it that you would recommend [XYZ] to a friend or colleague?” The metric and the question are designed to measure current satisfaction, and the design logic of the question (and the associated…
039

De-risking and Leveraging Brand Equity Ownership in Commercial Due Diligence

By Jeff Merkle

In Commercial Due Diligence, it’s often the assumption that customer relationships are an “asset” of the business, but that’s not always the case. The reality is that for many businesses, the quality and stability of customer relationships are owned by account representatives (and possibly only a few reps) – who walk out the door with those assets every night, and who (for the right…
038

Brand Equity: Institutionalized or Individualized?

By Jeff Merkle   VIDEO

Evaluating the degree to which Brand Equity lies with a target company versus with individual sales and service reps of the company should be a key exercise in Commercial Due Diligence - for both the benefit of valuation and for value gen opportunity assessment. Determining the clues that enable methods for institutionalizing the relationships drives strength of recurring/repeat revenue,…
014

Discovering Repeatable Growth in your Diligence

By Jeff Merkle

Over the years, I have heard multiple M&A professionals say “we don’t underwrite hopes and dreams,” by which they mean new tactics proposed, but not tested, by Management (and their bankers). What is not discussed as often are the new tactics that have been tested…but that are destined to work just once. These tactics are what we call unrepeatable growth stimulants, UGS (or just,…
013

Using Diligence and the Ownership Change to Leverage What Matters to Customers

By Mark Stein

Conducting commercial diligence that matters should equip the new owner and the leadership team with insights that can quickly make an impact on market share and pricing opportunities (among other opportunities).
012

Commercial Due Diligence and Value Generation via Network Effects

By Jeff Merkle

Many attractive investments are predicated on network effects – these are businesses that connect users, buyers, and/or suppliers. Companies like Visa, eBay, and LinkedIn have famously enjoyed the benefits of network effects to accrue immense, highly durable value. Outside of software, businesses such as recruiting, retailing, media, health provider networks, and many others, enjoy network…

Search