Ecommerce business due diligence
Introduction and Credential
As a company from the very beginning closely related to the e-commerce industry, we are specialists in transaction advisory. Knowledge and experience make our analyzes a valuable source of information about the current state of the company that is subject to the transaction. Starting from initial analyzes, to a full review of the share, quality of traffic and usability of the e-commerce store’s website – you get a full report containing your most-needed information about the company and its competitors.
Over the years since the establishment of Greenlogic already we advised companies such as Hartenberg Capital, for which we performed an analysis of the acquisition of 5. 10. 15. We were responsible for the execution of the business model analysis, evaluation and sources of traffic forecast. We also helped in the negotiations during the takeover of such e-commerce businesses as Łazienkaplus.pl, and we participated in similar projects for the M & A advisory group. Our observations shaped the current development strategies of the above-mentioned companies and enriched our experience. Cooperation with international companies has greatly expanded our knowledge and allowed us to gain recognition in the domain of transaction advisory.
Q & A sessions
Based on the knowledge and experience gained in the coordination of projects, we set a questionnaire of the most important questions that should be asked before the transaction is sealed. Before the final decisions are made, it is worth knowing the objectives and assumptions that guide the company being the subject of the transaction.
These questions are intended to better understand the strengths and weaknesses of the company, the management strategies and employee motivation implemented so far. All this to get to know the ground in which you will set up your business in a moment. A thorough understanding of the current situation of the company will also allow to develop effective steps to strengthen its position on the market. A good strategy requires in-depth preliminary analysis. Our Q & A session is a good start.
Analysis of the online retail market and the size of the share
Accurate knowledge of the current situation of the market and the size of company’s will allow us to assess whether the existing development strategies of the company were adequate or whether the situation will benefit from their modification. Market analysis is a fundamental in the financial analysis, allowing determine the sales potential of the company.
On the basis of the information collected, you will be able to determine whether it pays to invest in a company or whether there is potential for its further development. The share size analysis allows you to determine the company’s financial prognosis. For this reason, this is the most important step in the analysis of the company.
Determination and analysis of competition
Awareness of current competition activities is the first step on the road to quick improvement of the company’s profitability. Knowing the moves of the rivals, you will be able to put them on the way to the goal, and you will use the aspect neglected for your own purposes.
A good analysis of competition assumes the analysis of many factors. It is not only the current economic, social and marketing condition that is at stake, but also the future goals and measures used by competitors to achieve them. The possibility of forecasting competition moves is possible due to a thorough analysis of the collected data.
The analysis also allows determining the strengths and weaknesses of the company in comparison to its competitors. It allows to determine which aspects of the activity are ahead of the competition, are original and represent the strength of the company. It also clearly indicates the areas for improvement: in these aspects, hard work will be needed to match the competition.
Analysis of the volume and quality of traffic
Before we start the transaction, we must also take into account whether the company is profitable, and how it spreads users’ traffic. We must ask ourselves the following questions: is it a valuable, profitable or empty move? A low bounce rate and high conversion rate are obviously good signs of success.
On the other hand, the detected traffic problems on the website do not necessarily mean that the transaction will be a mistake. Low conversion can mean many things, including problems with an appropriate structure of the page content. Perhaps minor changes will lead to dramatic changes. These are the aspects we are trying to analyze when assessing the quality of traffic. We give not only weaknesses but also suggestions for improving them.
Traffic volume is also not without significance. Using analyzed data, we will help you determine whether the business uses its maximum potential. We will also suggest possible development paths. We know what to do to increase traffic, and thus also the success of e-commerce.
Ecommerce and user experience audit
We want your newly purchased e-business to bring profits. Sometimes it requires a re-examination of the structure of information within the site. We will check if browsing the website causes problems for potential users, and whether all sales processes are running smoothly.
In an e-business, the success and failure often determines the speed. That is why we put special emphasis on the transparency of the layout and content. Shopping in your e-store should be a pleasure from beginning to end. Thanks to our careful analysis, we will present ways to make this possible.
An audit of the sales path will allow you to capture basic navigation errors, which ultimately will lead to its shortening and better sales results. We know what a good e-business should characterize to attract and engage users.
In addition, usability is an important element in any business – a user-friendly service sells more and has many involved customers. We carry out comprehensive user experience audits, including user tests. Thanks to this, you will get to know your e-business from the potential customer’s perspective and understand its way of thinking, which will indirectly translate into sales results.
Off-site and on-site SEO analysis
Thorough analysis of SEO is “icing on the cake” – a process that makes online business even clearer and easier to navigate. When optimizing the website, we take into account your clients in particular – we want to show them what they are looking for, in the best possible form. That’s why we take many factors into account.
We check the speed of the website and other technical errors that may make it difficult to navigate the website, and thus make it difficult or even impossible to make a transaction. What bothers the user may also indirectly contribute to a downgrade in the search results. Therefore, we pay special attention to the technical condition of the website.