Hi,

From my experience working at Big4:

Commercial Due Diligence (CDD) is basically market research.

Not to be confused with Financial Due Diligence (FDD) which is an accounting evaluation of a deal prior to an M&A.

Not sure what type of technical questions you have in mind, but probably at CDD they will test your market research skills (which may include data analysis skills) and at FDD they will test your technical accounting skills.

P.S. Please note that the essence of the work and the names of the positions may differ depending on the company and the position type.

Hope I helped to clear this out,
Nick

 

(edited)

Hi,

Which firm is your interview with?

Assuming this is for MBB, here are a couple of general pointers based on my experience working in BCG's PIPE (Principal Investor & Private Equity) practice area:

• Do not anticipate a ‘specific’ type of CDD/PE type question → at BCG, all our PIPE interviewers used the same case they would give a generalist hire. You are expected to be able to pass the bar of a generalist hire
• Even if the case was a PE type case (e.g. M&A, value creation), the expectation at the junior level is that you are able to demonstrate strong fundamental problem solving skills and sound business judgment that are industry agnostic
• Lastly, contrary to what Nikita has mentioned, CDD is not ‘just market research’. That is a big misconception and fundamental lack of understanding about the nature of CDD. There are numerous market research firms out there but your global PE shops (e.g. KKR, Carlyle, TPG etc) are NOT hiring market research firms to do their CDDs - they are hiring consulting firms (be it MBB or T2) to do that. 

I helped to build BCG SEA's PIPE practice, and I have spent ~3 years doing PIPE related projects for both PE clients and SWFs. Happy to share more details and CDD specific insight - just drop me a dm.

All the best!
 

(edited)

Hi there,

You should definitely build up your business/commercial knowledge.

This is true for any consulting interview, but especially so for commercial DD. While it's possible you are not asked technical questions, why not be prepared for the possibility? Even if you aren't directly asked, don't you think you'll have a better shot of getting the offer if you showcase this knowledge?

Short answer: You have the time so work hard to build up your knowledge and maximize your chances!

Here's some reading to help:

https://www.preplounge.com/en/articles/pitfalls-case-interview-preparation

https://www.preplounge.com/en/articles/how-to-shift-your-mindset-to-ace-the-case
 

https://www.preplounge.com/en/articles/dos-and-donts-in-a-case-interview
 

https://www.preplounge.com/en/articles/candidate-led-cases-what-to-expect-and-example-cases

Hi there!

The format of the interview depends from firm to firm and role to role. On top of that, they're also fond of changing these formats once in a while. 

So in short, I wouldn't use an answer from here to guide your thinking.

Instead, reach out to HR and ask them what will be the format of the interview, whether you'll be presented with cases only from within due diligence, whether there is a technical aspect of the interview as well. 

In general, unless you are applying for an expert or senior role, you're not tested for knowledge but it's best to know in advance so you can adjust your prep accordingly. 

Best,
Cristian

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No technical questions for a CDD. You'll have a regular strategy case interview. Of course, higher likelyhood of having to perform a market sizing, and brainstorming questions around market behavior and performance optimization strategies.