Commercial Due Diligence: Scooters and Motorcycles Industry in Netherlands (2024)

Commercial Due Diligence for the Scooters and Motorcycles Industry in the Netherlands

This commercial due diligence report will provide you with a detailed assessment of all aspects related to a planned investment or corporate restructuring process within the scooters and motorcycles industry in the Netherlands. The commercial due diligence will provide you with actionable insights and a thorough examination of potential opportunities and risks.

The scooters and motorcycles due diligence report presents a thorough analysis of your planned investment and gauges its overall impact on your business. It studies your investment opportunity and considers the local market situation, competitive landscape, and the factors driving market development.

The commercial due diligence report is focused on a particular product group within the scooters and motorcycles industry in the Netherlands. Specifically, it will be tailored for one of the below product groups:

• On-road motorcycles: Sports motorcycles; Cruiser motorcycles; Chopper motorcycles; Touring motorcycles; Sport-touring motorcycles


• Off-road motorcycles: Off-road motorcycles or dirt bikes; Motocross motorcycles; Enduro motorcycles; Trail motorcycles; Track-racing motorcycles

The due diligence study provides a comprehensive assessment of your business within the scooters and motorcycles industry in the Netherlands. The process involves a detailed analysis of relevant documents, financial statements, and operational procedures to evaluate your scooters and motorcycles business. It will identify risks and opportunities associated with a potential investment within the market in the Netherlands. The scooters and motorcycles commercial due diligence report is guided by a comprehensive analysis of your company's overall market standing, strengths, and weaknesses.

You will receive the commercial due diligence report within 3 to 5 months after purchase. After project delivery, you will have enough time to thoroughly analyze it and discuss the results. Our team will be available for any clarifications or questions you might have within 3 months after project delivery.

In the same industry and geographical region, we also offer detailed market reports, feasibility studies, business plans, market entry, market development, product launch, and product development studies, consumer research, and related market research services. Contact us to learn more about how we can support your project's success.

Company Overview and Investment Opportunity

This section of the scooters and motorcycles commercial due diligence report includes a general description of your company's history, business vision, and goals, along with an overview of the planned investments and the reasoning behind them. It also features a review of your company's size, standing, and competitive position within the scooters and motorcycles industry in the Netherlands, key value proposition, and a summary of its main products, services, and operations. The chapter provides an assessment of possible influences the investment may have on current operations.

The section answers the following questions:

• What are the goals, vision, mission, history, and values of your company?


• What are the strengths and weaknesses of your company (SWOT Analysis)?


• What are the characteristics of major products?


• What are the key factors behind your company's industry success?


• What are the aspirations behind the considered investment? How will it affect current day-to-day activities?


• What results will deem the strategic move commercially successful?

Market Research

The market analysis section of the scooters and motorcycles commercial due diligence report provides an overview of the market size, dynamics, and segmentation in volume and value terms for the last five years. It contains data on trends, competitive landscape, and other aspects related to market development in the Netherlands. The section also provides a forecast for market development in volume and value terms in the next six years.

The section of the due diligence analysis answers the following questions:

• What are the size and the dynamics of the market in the Netherlands in volume and value terms?


• How is the market in the Netherlands segmented (by origin, product type, application, end-use, etc.)?


• Is the domestic market self-sufficient?


• What are the major trends and regulatory factors that affect the market?


• Which are the major companies on the market and what are their main characteristics?


• How intensive is the competitive landscape?


• What is the degree of competition based on Porter's five forces?


• What are the drivers and challenges affecting market development?


• How has the volume, value, and segmentation of local production changed over the past five years?


• How is the value chain of the market formed? What is the structure of price formation?


• What are the average producer and retail prices on the local market and how have their dynamics changed for the last five years?


• How has the volume, value, and segmentation of imports and exports changed over the past five years?


• What are the average import and export prices? How have their dynamics changed over the last five years?


• How has the consumption and the consumption per capita changed over the past five years?


• How will the local market within the scooters and motorcycles industry in the Netherlands develop over the next six years under three possible scenarios (base, optimistic, pessimistic)?

Operational Due Diligence

This section of the scooters and motorcycles commercial due diligence analysis takes a deep dive into the intricacies of the supply chain management of your company and its current operations. It provides a fact-based understanding of the different supply chain stages, and evaluate their resilience and efficiency. The section also helps assess the company's ability to conduct its day-to-day operations.

It answers the following questions:

• What is the nature of the manufacturing process?


• What are the key phases of the operational process and their efficiency?


• Where are the main business facilities (production plants, offices, warehouses, retail locations) situated? How do they support the operational activity?


• What is the availability of raw materials? Are there multiple sources of supply for critical inputs?


• Is there room for operational improvement or any supply chain bottlenecks that are imperative to address?


• What are the current technological requirements to support and possibly increase the efficiency of production?


• What is the degree of automation?


• What are the crucial assets owned by your firm? What is their age and value?


• What is the company's production performance?

Review of the Marketing and Sales Strategy

This section of the scooters and motorcycles commercial due diligence report examines your company's sales and marketing strategies, advertising programs, and customer relationship management (CRM). It also gives a better understanding of the effectiveness of your company's efforts to attract, retain, and expand its customer base.

The due diligence analysis focuses on estimating the penetration rate of the products, the total serviceable market, and the actual realistically obtainable market post-investment. Thus, it assesses the growth potential of the products in the Netherlands. That will help you select the proper strategy and market penetration tactics, which will support the establishment of your products and brand name, promoting loyalty and positive customer perception.

The scooters and motorcycles due diligence report includes a consumer behavior survey with 250 respondents who align with your target audience profile. This feature brings you insights that are directly applicable to the market of interest. The representative consumer behavior survey pinpoints the sentiments and thought processes behind consumption decisions. For a deeper understanding, you can include more respondents at an additional fee and customize questions to get specific answers. Contact us with your specific requirements.

This chapter answers the following questions:

• Are your products positioned correctly on the market?


• Do your consumers perceive your product segments and brand(s) as you want them to?


• Are you reaching out to the right customers for your business?


• Is your marketing strategy, including advertising, media, and other sales promotion programs efficient?


• How many active customers has the business lost?


• What are the unique selling propositions (USPs) of your products? What are their strengths and weaknesses?


• Will the strategic move or investment opportunity unlock access to new markets and previously untapped consumer segments?


• Are there any seasonal sales patterns and factors affecting your company?


• What are the main types of distribution channels for your niche?


• How will the investment affect the marketing and sales results of your company in terms of new sales channels, enhancements in customer perception, experience, behavior, etc.?

Organizational Due Diligence

This section of the scooters and motorcycles commercial due diligence report analyzes the recruitment and human capital management strategies, organizational structure, and the management team of your company. It provides a comprehensive overview of the key decision-makers within the team, focusing on their qualifications and roles.

In addition, it can help you understand the departments within a company, and identify essential employees, as well as risks and opportunities associated with the workforce. This chapter supports your decision on whether there should be any recruitments or layoffs for the investment activities to be successful.

The organizational section answers the following questions:

• What is the current organizational structure of the company?


• What recruitment and onboarding strategies are utilized?


• What are the number and type of employees by department and geographic location?


• Who are the key leaders and executives in the management team?


• What are the backgrounds, experiences, and qualifications of the most important employees and managers? Can they support the strategic investment?


• What are the employee relationship management policies in place?


• What social benefits are provided to employees?


• How can the working conditions be assessed?


• Does your company have a high rate of employee turnover?

Based on your requirements we can provide optional research on employee sentiment and employer branding of your company.

With the help of the optional employee survey, the organizational section will enable you to consider employee sentiment towards the company, the proposed strategic move, and their satisfaction levels. It can also help you gauge how strong the employer branding of the company is, and how it would affect any recruitment efforts.

This optional part of the chapter answers the following questions:

• Is the current labor morale high enough to support the planned strategic investments?


• What is employee perception of the organizational culture of your company?


• How can the employer branding of your company be assessed? If needed, how easy would it be to attract new talent to the team?

Financial Due Diligence

This chapter of the scooters and motorcycles due diligence analysis dives deep into the financials of your company. It provides clarity on the financial position of the entity, investigating cash flows, income statements, and balance sheet elements.

The financial chapter sheds light on whether the considered investment is appropriate given the current financial situation of your company. The financial model will consider different ways to fund the deal and make suggestions on the optimal debt amount.

Furthermore, the financial model will provide you with a forward-looking perspective on the financial health of your business for the next 15 to 25 years. It will show you a clear path to profitability by analyzing the investment model, required financing, project revenues and expenses, cash flows and discounted cash flows.

The financial section of the scooters and motorcycles commercial due diligence report incorporates a number of key project performance indicators. Those include net present value (NPV), discount rate, internal rate of return (IRR), return on investment (ROI), profitability index (PI), investment payback period, enabling you to optimize your business model from different financial standpoints. Some of the largest global financial institutions have already backed up new business ideas and projects, based on our financial models.

This financial section answers the following questions:

• What are the assumptions used for the financial projections?


• How has your company fared in the context of the market developments over the last few years?


• What is the expected revenue, profit margin, and return on investment of your business?


• What is the cost breakdown of regular operations?


• How would the investment program look like? What is the anticipated level of cash inflows and outflows?


• Is your company in good overall financial health? Can the firm support the proposed investments? Would these activities pose significant financial challenges?


• What would be the impact of different amounts of debt on the financial situation of the company?


• What is the value of the key assets your company owns, including machinery and equipment, as well as intellectual property?


• What is the overall effectiveness of the investment?


• How profitable is your investment project expected to be based on the internal rate of return (IRR)?


• How long will it take for your investment to pay back its initial cost?

Possible Risks and Mitigation Strategies

This chapter of the scooters and motorcycles commercial due diligence report examines the risks that might challenge the completion of the strategic move and post-deal operations. It analyzes the variety of business risks that could be expected, along with their impact on the planned deal. These include risks associated with commodity pricing, regulatory changes, interest rates, foreign exchange exposure, future capital requirements, product life cycles, etc.

This section answers the following questions:

• What technical, operational, market, financial, regulatory risks can be anticipated in the short- and medium-term?


• What strategies should be employed as a way to mitigate those risks, or work around them?

Investment Strategy Fit

Based on the thorough analysis of the company's operations, this chapter of the scooters and motorcycles commercial due diligence draws conclusions so you can make an informed decision about the investment opportunity and its potential implications. This section also provides recommendations on how to proceed with the investment plan.

It answers the following questions:

• Does the proposed endeavor align with the vision and purpose of your business?


• What are the key success factors for the deal? Which challenges should you be mindful of? How can you efficiently address them?


• What is the implementation timeline for the various stages?

Short Methodology

The scooters and motorcycles commercial due diligence report is prepared using WMStrategy's proven research methodology. It includes a blend of qualitative and quantitative data. The market information comes from official sources and includes insights from at least 20 market experts (representatives of the main market participants), gathered through semi-structured interviews. A detailed methodology is available upon request.

The scooters and motorcycles due diligence project involves two main steps. The first step involves a tailor-made questionnaire. It will gather essential information about your scooters and motorcycles business to support the development of the project. The second stage presents a detailed analysis of your business to identify and address potentially significant areas of loss, liability, and potential areas of improvement.

A crucial component of the methodology is the consumer behavior survey. It is an indispensable tool for monitoring customer perception, sentiments, preferences, and behavior. The survey methodology utilizes precision targeting to identify and engage 250 respondents who closely match the profile of your target audience. Depending on your requirements, a survey with a larger sample of respondents can be commissioned and you can directly ask your target audience specific questions to get specific insights.

The approach also includes an in-depth financial analysis, which is built on carefully researched data. Its goal is to provide insight into whether the reviewed investment opportunity is appropriate, given the current financial status of your company. The classic valuation method of discounted cash flow (DCF) is utilized. In the process, some key financial indicators are developed to serve as a tool for performance tracking. The collected data is then applied in the analysis of the main business strategies, maximizing your probability of success in light of the market dynamics, trends, and challenges.

Due Diligence Report Benefits

• Get an insight-based commercial due diligence report, 100% developed for your specific business, taking into account your goals, needs, and targets;


• Benefit from a comprehensive evaluation of the important information about your company to convince banks and investors that your project is a worthwhile investment;


• Achieve time and cost savings by reducing the risk of expensive errors and misunderstandings;


• Conduct fact-based negotiations and debt structuring;


• Benefit from detailed financial projections, outlining how your company will likely fare in the next few years;


• Back up your scooters and motorcycles due diligence with a financial model that can serve as a benchmark to track your current performance;


• Discover how the target market performed in the past (in the last five years) and how it will perform in the future (in the next six years);


• Track and identify market trends and gain insight on drivers behind recent market changes;


• Strategically assess the competitive position of the main market players;


• Be sure to understand how the investment would affect your product portfolio going forward;


• Find out which markets and customers you will gain access to following the deal, and ascertain if they are worth the investment;


• Prepare for investor pitches and presentations, as the scooters and motorcycles commercial due diligence report will answer some of the most important investor questions;


• Increase your chances of securing investments with a data-rich and easy to understand commercial due diligence report;


• Understand and evaluate in advance what the potential risks might be, and receive recommendations on possible strategies to work around them;


• Discover growth potential, opportunities, demand drivers, and challenges in the market;


• Assess the unique selling points of your products;


• Improve your pitches and presentations by using verified market data and expert insights;


• Increase your success chance in the scooters and motorcycles industry by defining the expected costs and projected benefits of the new investment project in detail.

Due Diligence Report Users and Target Audience

The scooters and motorcycles commercial due diligence report is ideal for people involved in business transactions, investments, and strategic decision-making who need to gain a comprehensive understanding of the commercial activity of a company. The due diligence service can help you outline important operational aspects related to the investment in question and assess the best way to carry it out. The due diligence report is tailored to an audience, which could include the following stakeholders:

• Investors (such as private equity firms, venture capitalists, and angel investors);


• Bank managers;


• Investment managers;


• Shareholders;


• Financial professionals;


• M&A managers;


• C-suite executives;


• Directors;


• Industry strategists;


• Marketing professionals;


• Business development professionals;


• Management consultants;


• Product developers;


• Product marketers and strategists;


• Product managers;


• Project managers.

Deliverables

• Detailed scooters and motorcycles commercial due diligence report in PDF format;


• Excel-based, editable financial model covering several possible scenarios that can serve you well as a benchmark to check and track your business performance;


• Compelling investor pitch deck PPT presentation.