Relationship Diligence provides an Acquirer with authentic intelligence on the current state of a Vendor’s commercial relationships as well as the future security of those relationships.
Our clients have identified multiple benefits of a Relationship Diligence audit:
- Saves the expense of legal and accountancy fees on deals that are not worth taking beyond Heads of Agreement
- Provides detailed intelligence on each relationship
- Measures the Vendor’s performance against our industry benchmarks
- Identifies from the perspective of the Vendor’s clients, the people on their business that are crucial to retaining and growing the business
- Assesses the cross-selling opportunities with the Acquirer’s business
- Uses the intelligence to frame and influence the final negotiation
Methodologies that are fit for purpose
We have two proven intelligence gathering methods that can be applied to any proposed deal both of which crucially provide an analysis of the commitment rather than satisfaction of the Vendor’s clients and thereby sign.
The most rounded approach to unearth intelligence on the health of the Vendor’s client relationships, both currently and in the future are depth interviews. These will identify strengths, weaknesses, opportunities and threats and critically allow us to plot and illustrate- via our proprietary Client Commitment Index® (CCI) - the level of commitment to the Vendor of each individual (and company) client relationship.
Where there are large numbers of Vendor stakeholders and/or reporting is needed very quickly we deploy our award-winning Relationship RADAR® client feedback system, which can also deliver a picture of client commitment.
Typically, this is used with non-key-decision-makers of the key clients that are to be interviewed, as well as the Vendor’s smaller/lower value clients.
Results are available to you in real-time from our interactive dashboard.
- We have the resources and experience to move with speed
- Typically, we report scores/themes on three levels: Vendor overall, client company and by individual
- Areas in which the Vendor is seen to be performing well
- Areas in which the Vendor needs to improve
- A summary of each client company relationship as a whole
- Individual and overall positions on the Client Commitment Index®
- Business development opportunities
- Potential threats to the Vendor’s business
- Recommendations to resolve identified areas of under-delivery, as well as how to build on the positive aspects of the relationship with each individual