Commercial due diligence is buyer-side analysis of the target business’s market position, growth prospects, competitive dynamics, and customer base, typically conducted by a strategy consulting firm or commercial diligence specialist. Commercial due diligence is intended to validate the business case for the acquisition, not to identify legal or financial risk.
In Australian sub-$20M deals, commercial due diligence is most common where the buyer is a private equity firm, an offshore strategic, or where the deal thesis depends on a specific market view that requires independent validation.