GTM Due DiligenceInvestment Clarity Through Revenue Intelligence

De-risk acquisitions and maximize value creation with deep commercial assessments that reveal growth potential, validate assumptions, and uncover hidden opportunities before the deal closes.

The difference between thesis and reality.

Every deal starts with an investment thesis-assumptions about market opportunity, competitive position, and growth trajectory. But assumptions aren't facts. Commercial due diligence separates belief from evidence, revealing the truth about a company's revenue engine before capital is committed. PE firms and strategic acquirers who skip this step don't just risk overpaying-they risk buying problems they can't solve.

The Risk

Unvalidated assumptions

Investment thesis based on hope, not data.
Hidden weaknesses

Pipeline quality, churn, and pricing gaps revealed post-close.
Time pressure

30-60 days to assess years of commercial reality.

The SBI Approach

Market validation

Independent assessment of TAM, growth, and positioning.
Revenue quality

Deep dive into pipeline health, retention, and unit economics.
Growth roadmap

100-day plan to capture immediate value creation.
Risk mitigation

Flag deal-breakers before they become losses.

GTM Due Diligence FAQs

Common questions about commercial assessments and investment decision-making

What is GTM Due Diligence and why does it matter?

GTM Due Diligence is a systematic evaluation of a target company's market position, revenue quality, and growth potential conducted before an acquisition. It validates the investment thesis by examining market dynamics, competitive positioning, customer satisfaction, sales effectiveness, and growth capacity. GTM Due Diligence matters because it reveals risks and opportunities that financial statements miss-like customer concentration, pricing pressure, competitive threats, or hidden growth levers. PE firms use GTM Due Diligence to avoid overpaying, negotiate better terms, and build value creation roadmaps. Without it, you're buying based on hope rather than evidence.

Who conducts GTM Due Diligence assessments and when?

GTM Due Diligence is typically conducted by specialized advisory firms with deep commercial and industry expertise during the 30-60 day exclusivity period after LOI signing. Timing is critical-starting too late leaves insufficient time for thorough assessment; starting too early wastes resources on deals that won't proceed. The GTM Due Diligence team works in parallel with financial, legal, and operational diligence, interviewing management, customers, competitors, and industry experts while analyzing company data. Best practice is to scope CDD work during LOI negotiation so assessment begins immediately upon exclusivity. Rushed CDD produces superficial findings; proper scoping and timing enables deep insights.

What does a typical GTM Due Diligence engagement cost and deliver?

GTM Due Diligence engagements typically range from $150K-$500K depending on target complexity, deal size, and scope depth. For that investment, you receive: independent market sizing and competitive analysis, customer interview findings (typically 15-25 interviews), revenue engine assessment covering sales, marketing, and customer success, financial modeling and scenario planning, risk identification and mitigation recommendations, and a 100-day value creation roadmap. The deliverable is usually a 100-150 page report with executive summary, detailed findings, and appendices. ROI comes through better pricing (average 15% valuation adjustment), risk avoidance (walking from bad deals), and faster value creation (hitting targets 6-12 months faster). The cost of poor GTM Due Diligence-or no GTM Due Diligence-is measured in millions.

How do you validate market size and growth claims?

We validate TAM/SAM/SOM through triangulation: bottom-up analysis building from target's actual customer data and win rates, top-down research using industry reports and expert interviews, and peer comparison analyzing similar companies' performance and penetration rates. Red flags include: market definitions so broad they're meaningless, growth assumptions requiring unrealistic market share gains, and TAM calculations that don't translate to addressable opportunities. We interview customers, prospects, and competitors to understand buying behavior, budget availability, and decision factors. The goal isn't finding the biggest number-it's establishing realistic, evidence-based opportunity sizing that supports achievable growth plans.

What makes revenue 'high quality' versus 'at risk'?

High-quality revenue shows: low customer concentration (no single customer over 10% of revenue), strong retention and NRR (>90% GRR, >110% NRR for SaaS), healthy pipeline coverage (3-5x coverage of quota), efficient CAC payback (<12 months), and multiple growth vectors (new logos, expansion, cross-sell). At-risk revenue exhibits: heavy concentration among few customers, declining retention or expansion rates, pipeline dependent on one or two large deals, increasing CAC without corresponding LTV improvement, and single-threaded customer relationships. We assess revenue quality through data analysis, customer interviews, and cohort analytics. The question isn't just 'how much revenue' but 'how durable, defensible, and repeatable.' High-quality revenue commands premium valuations; at-risk revenue demands discounts and mitigation strategies.

How do you assess sales effectiveness during diligence?

Sales effectiveness assessment examines: rep productivity metrics (average deal size, win rate, sales cycle, quota attainment), pipeline health and conversion rates by stage, sales process discipline and CRM hygiene, compensation structure and attainment distribution, talent quality and turnover rates, and enablement maturity (onboarding, training, content). We analyze CRM data, shadow sales calls, interview reps and customers, and benchmark against industry standards. Common findings: overreliance on founder/VP for closing, inconsistent sales process, inadequate territory coverage, misaligned compensation, or poor onboarding leading to long ramp times. Strong sales organizations show consistent execution, scalable processes, and predictable output. Weak ones depend on heroes, luck, or unsustainable discounting. Sales effectiveness directly impacts achievable growth and required investment.

What's included in a 100-day value creation plan?

The 100-day plan bridges diligence findings to post-close execution with specific, prioritized initiatives: Quick wins (Days 1-30): pricing optimization, deal term standardization, low-hanging sales process improvements, and customer communication strategy. Foundation building (Days 31-60): territory redesign, compensation alignment, pipeline management discipline, and retention risk mitigation. Growth acceleration (Days 61-100): expansion motion launch, new market entry preparation, sales capacity additions, and marketing effectiveness improvements. Each initiative includes: specific actions and owners, success metrics and milestones, resource requirements and dependencies, and expected ROI and timing. The plan isn't theoretical-it's actionable, resourced, and tracked. Best plans identify $5-15M in incremental EBITDA opportunities within 12 months through revenue growth and margin improvement.

Can GTM Due Diligence reveal deal-breakers that justify walking away?

Absolutely. Common deal-breakers we uncover: undisclosed customer concentration (one customer >25% of revenue threatening to leave), fraudulent pipeline (deals staged incorrectly to inflate projections), fundamental market mischaracterization (TAM assumptions off by 10x), competitive displacement (customers defecting to better solutions), product-market fit issues (high churn despite claims of satisfaction), and management credibility problems (findings contradicting management assertions). Good PE firms walk from 10-15% of deals post-diligence when evidence contradicts thesis. Better to lose diligence costs than invest millions in unfixable problems. GTM Due Diligence provides the conviction to walk away or the evidence to renegotiate terms reflecting actual risk. The best diligence isn't about confirming what you want to believe-it's about discovering truth.

How quickly can you complete a GTM Due Diligence assessment?

Standard GTM Due Diligence timeline is 4-6 weeks from kickoff to final report, though we've completed focused assessments in 2-3 weeks when timing demands it. The process includes: Week 1: Kickoff, data room review, initial management interviews, and work plan refinement. Weeks 2-3: Customer and market interviews, competitive analysis, data analysis, and deep-dive sessions. Week 4: Findings synthesis, value creation planning, and draft report. Weeks 5-6: Final report, management presentation, and Q&A. Faster timelines require trade-offs-fewer interviews, narrower scope, or parallel workstreams. The constraint is usually target responsiveness (providing data, scheduling interviews) rather than our capacity. We staff engagements with partners and senior consultants who can move fast without sacrificing quality. When deals move quickly, we move quickly. When they slip, we adjust accordingly.

From the Experts

Insights from our team of commercial due diligence specialists and private equity advisors.

Brian Stearns

Partner, Private Equity Practice

The best deals aren't found in spreadsheets-they're validated through disciplined commercial assessment that reveals truth, not hope.

Eric Estrella

Sr. Partner, Private Equity

PE firms win by knowing what they're buying. Our GTM Due Diligence work turns assumptions into evidence and risk into opportunity.

Gabrielle Mathews

VP, Private Equity Practice

Data tells stories that management teams can't-or won't. AI-powered analysis reveals patterns that manual diligence misses.

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GTM Due DiligenceInvestment Clarity Through Revenue Intelligence

The difference between thesis and reality.

The Risk

The SBI Approach

What We Assess

Market & Positioning

Revenue Engine Quality

Value Creation Plan