The Advantage of Advanced Analytics: Power to Level Up Commercial Due Diligence

In today's dynamic business landscape, commercial due diligence (CDD) has become increasingly complex, demanding more sophisticated analytics to ensure successful decision-making. Professional services firms are increasingly turning to advanced data analytics to gain better insights and provide more precise forecasting for strategic value creation. At Stax, our Advanced Analytics team leads this evolution — focusing on growth opportunities, consumer insights, and emerging trends. We deliver elevated value through comprehensive deliverables and identifying opportunities for future strategic value creation, empowering our clients to make more informed and impactful investment decisions. Our key specializations in CDD engagements include the following areas: 

• Uncovering Growth Opportunities with Whitespace Analysis: Our team excels at identifying untapped market opportunities and quantifying growth potential through whitespace analysis. Using geospatial and competitor analyses, we simulate customer buying patterns and decision criteria. Our predictive models and market optimization algorithms highlight pockets with favorable demand-supply imbalances, guiding our clients to develop a strong understanding of the potential for future markets, acquisition targets, or product expansion opportunities, enabling them to gauge potential future expansion opportunities.
• Gaining Customer Insights via Advanced Analytics: Our CDD work leverages state-of-the-art customer analytics to assess the stability and growth potential of target companies. By combining methods like clustering techniques, predictive models, and sentiment analysis, we identify the most valuable customer segments, estimate lifetime value, and forecast future customer intent, ultimately assessing its impact on the business. 
• Identifying Price Optimization Opportunities: In CDD engagements, Stax performs pricing diagnostics on internal transactional data to identify opportunities for potential price optimizations and estimate their impact. Additionally, we model price elasticity through conjoint studies to uncover value creation opportunities post-close. 
• Forecasting Market Dynamics with Business Cycle Analysis: We use predictive analytics to model market uncertainty and understand its impact on business performance under various market scenarios—both upside and downside. These scenarios help our clients understand potential risks and factor them into the valuations.