During the due diligence stage of a business acquisition, the acquirer must analyze the acquisition target’s quantitative and qualitative data to decide if the transaction is likely to fail or succeed. One low-risk area of focus you should evaluate as an acquirer before completing due diligence is the target company’s marketing-related information. To ensure your expansion through acquisition strategy is as thorough as possible, learn more about the main marketing due diligence documents an acquirer should request and how to evaluate them.
What Marketing Documents Should the Acquirer Request?
When an acquirer reaches the point of due diligence and starts to evaluate a target company’s marketing information, the first thing to address on their marketing due diligence checklist should be to request a few documents. These marketing-related documents include:
- Copies of printed and digital marketing materials
- Copies of pending proposals
- Revenue by customer and market segment
- Prequalifications held
- CRM database used
Once you receive these documents, you’ll be better equipped to properly analyze the company’s marketing efforts and identify any potential areas of concern. These documents also allow you to identify key areas where you might have a talent overlap with existing staff. Additionally, you can see how their marketing standards differ from yours and get them up to speed on the standards you’ll expect them to follow.
What to Evaluate When Reviewing a Target Company’s Marketing Information
As you evaluate the above documents, you’ll want to inspect the target’s current physical and digital marketing efforts as soon as possible. Doing so can help you begin planning for your future marketing efforts and needs once you combine your organizations. While marketing is a relatively low area of concern during due diligence, it is still an area that should be covered so the acquirer has a complete understanding of the marketing function at the acquisition target.
The Questions to Ask When Evaluating a Company’s Marketing Information
The due diligence inspection of marketing matters also gives you an opportunity to better understand the company’s various marketing processes through a “walkthrough” of their marketing processes. As the target company shows you how their marketing processes work, you should ask a few questions to see how their processes compare to yours and if they aid your acquisition goals. Some of the primary questions to ask include:
- Who is responsible for marketing efforts?
- How are proposals tracked?
- How are marketing efforts tracked?
- Is there a dedicated CRM system in use?
Typically, a staff member responsible for handling marketing efforts or a member of the target’s marketing team can conduct a walkthrough and answer these questions.
How to Benefit the Most From a Marketing Evaluation
If you want to get the most value out of your marketing evaluation, keep key areas of importance front and center to ensure the evaluation stays on task. However, when your evaluation reveals areas of concern or information that knocks you off track, it’s best practice to quickly document and share it. You may also want to request supplemental information about troubling information to ensure you can make a fully informed decision about whether you should stop, continue, or alter the M&A transaction.
Choose Thinc Strategy for Marketing Evaluation Assistance
Since due diligence can be a long process with lots of information to evaluate, turn to the experts at Thinc Strategy for merger and acquisition advisory services. Our certified merger and acquisition advisors can ensure your team has the expertise needed for a successful ownership transition. Whether you’re crafting your acquisition goals, conducting digital marketing due diligence, or at the sign and close stage, our team is here to serve your particular needs.