Commercial due diligence.

Read the common questions about this service

What the review is for

An investment case rests on a small number of commercial assumptions: who buys the output, at what price, for how long, and what happens when conditions change. Commercial due diligence tests those assumptions against evidence and tells the investor or lender how much weight each one will bear.

We write for the investment committee. Findings are ranked by their effect on value, each is tied to its source, and uncertain points are reported as ranges with the reasons stated.

Selected experience

• 50 MW solar PV, Jordan, due diligence on behalf of an investment fund
• 150,000 tpa energy-from-waste facility, United Kingdom, commercial and financial due diligence for a developer
• Energy-storage venture, assessment of an early-stage business for potential investment
• Energy-transition business, prospective investment exposed to electric-vehicle supply chains and critical materials
• Solar and battery storage for mining, Africa, market-entry assessment of power supply to mining customers
• Energy private sector, Angola, market assessment for the World Bank

Demand and offtake

For contracted assets we examine the offtaker: payment record, credit standing, the security behind the contract and the termination provisions. For merchant or user-pay assets we test the demand forecast against observed volumes, comparable assets and the drivers the forecast depends on. A contract is worth what the counterparty can pay.

Pricing and revenue

Tariffs, indexation, currency of payment, regulatory resets and exposure to market prices are set against the revenue line in the model. Where revenue depends on a regulator or a subsidy, we assess how that mechanism has behaved in practice and what would cause it to change.

Market and competition

Supply additions, competing assets, technology cost trends and policy direction determine whether today’s position holds over the investment period. We set out the market the asset operates in, the plausible changes to it, and the asset’s exposure to each.

Evidence and source quality

We combine project information with market research and specialist input, and record the quality of each source. Management assumptions, verified facts and our own estimates are labelled separately, and information gaps are listed with what it would take to close them.

From findings to the financial case

Each material finding is carried into the financial model as a sensitivity, so the reader sees its effect on returns, debt capacity and cover ratios. Findings then translate into action: a price adjustment, a contractual protection, a condition precedent or further investigation.

Working with other diligence workstreams

Technical, legal, tax and environmental diligence are delivered by appointed specialists. We align scopes at the outset so that commercial conclusions draw on their findings and no question falls between advisers.

Infrastructure commercial due diligence: common questions

Answers from Global Infrastructure Advisors. Meet our team and explore our published infrastructure experience.

What does infrastructure commercial due diligence assess?

GIA examines the assumptions behind demand, customers or offtake, pricing, market conditions and the business plan. The review is tailored to the asset, geography and transaction question and identifies evidence gaps that could affect the investment decision.

How does commercial due diligence differ from financial model review?

Commercial diligence tests whether the business assumptions are supported by evidence. Model review tests whether calculations correctly apply the assumptions entered. The two workstreams complement each other; a mechanically correct model can still rest on a weak commercial case.

How are uncertain demand or pricing assumptions handled?

GIA reviews the available project information and market evidence, records source quality and limitations, and identifies where further research or specialist input is needed. The assessment explains how material uncertainty affects the business case rather than presenting a single estimate as certain.

What does a commercial due diligence report deliver?

The agreed output includes an assessment of key business-plan assumptions, prioritised commercial issues and recommendations for further investigation. It explains the evidence behind the findings and their implications for the client's decision.

Related expertise

• Due diligence
• Red flag review
• Buy-side advisory
• Financial modelling
• Transaction advisory