How is CDD different from financial due diligence (FDD)?

FDD audits the historical numbers and validates working-capital, EBITDA quality etc. CDD tests the commercial narrative behind the numbers: is the customer base actually retaining, is the category actually growing, is pricing actually defensible.

Who typically pays for CDD?

The buyer in buy-side CDD. The seller in vendor-CDD (sell-side). Sponsors typically commission CDD before the LOI signs and the cost is borne by the fund.

How long does a CDD engagement take?

Standard 2-week sprint for focused engagements. 4-6 weeks for full-scope CDD on more complex targets. Accelerated 5-day engagements possible for live competitive auction processes.

Commercial Due Diligence (CDD)

Commercial Due Diligence (CDD) is the process of assessing a target company's competitive position, customer-base health, market dynamics and growth thesis — typically commissioned by financial sponsors or strategic acquirers before signing a transaction.

Term: Commercial Due Diligence (CDD)
Section: Glossary
Last refreshed: Q1 2026

01/In Depth3–5 paragraphs

CDD is the most common primary-research engagement in private-equity work and a frequent engagement in strategic M&A. Standard format is a 2-4 week sprint with 15-30 expert and customer interviews, delivered as a formal report.

The Big Four and specialist boutiques (LEK, Bain & Company, OC&C, etc.) dominate the high-end CDD market with full-service multi-disciplinary engagements. Expert networks support CDD work either as the primary research backbone for boutique CDD providers, or as a standalone primary-research engagement when the buyer's analytical capacity is in-house.

Typical CDD scope: market sizing and growth, competitive position, customer concentration and retention risk, pricing power, supplier and channel dynamics, regulatory exposure. Outputs feed directly into the deal-team's investment thesis and the IC paper.

Pricing varies dramatically: Big Four / specialist boutique CDD ranges €100,000-€500,000+. Expert-network-led CDD primary research runs €25,000-€80,000 depending on scope. Smaller engagements appropriate for mid-market and add-on transactions.

02/Examples4 concrete cases

+A mid-market PE buyer commissions 2-week CDD on a SaaS bolt-on acquisition
+A growth fund commissions CDD on a Series D candidate ahead of a leading round
+A strategic acquirer commissions CDD on a take-private candidate prior to LOI
+A sponsor exit team commissions vendor-CDD to optimise sale-process positioning

03/Frequently Asked3 questions

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04/See AlsoWhere this applies

04.1

EXPERT CONSULTATIONS

One-hour calls with vetted operators, executives and specialists across 50,000+ professionals. Scheduled in 3 to 5 business days. From €500.

04.2

COMMERCIAL DUE DILIGENCE

Buy-side and sell-side CDD built on operator and customer interviews.

05/Related Terms2 suggestions

DUE DILIGENCE

Due diligence is the systematic pre-transaction investigation of a target — typically a target company or asset — acr…

EXPERT NETWORK

An expert network is a marketplace that connects buyers (investment funds, corporates, consulting firms) with vetted …

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