When it is useful
It is relevant before investing, acquiring a company, entering a country, appointing a distributor or committing production capacity. The first task is to separate commercial expectations from available evidence.
It is also useful where sales are growing but margins, customer concentration or channel dependency make that growth more fragile than headline numbers suggest.
What it should review
The review should connect market structure, customer segments, proposition, pricing, margins, channels, sales cycle, pipeline, concentration, retention and commercial capability.
Not all evidence carries the same weight. Forecasts supported by orders, repeat purchasing and demonstrated conversion are stronger than estimates based only on sector growth or stated interest.
Questions it should answer
Where does revenue actually come from? How much is recurring? Which customers or distributors concentrate risk? What happens if the main channel is lost? Can pricing absorb discounts, logistics, financing and after-sales support?
The review should also identify assumptions that cannot be verified and explain which additional evidence could change the recommendation.
What it does not replace
It does not replace financial, legal, tax, technology or employment due diligence. Those workstreams should be coordinated when the decision requires a complete view.
A responsible conclusion may be to proceed, proceed subject to conditions, adjust valuation or structure, delay pending evidence, or stop.
How this analysis was prepared
Content directed and reviewed by Juan Carlos Martín Gil using the firm’s diagnostic method. It presents general criteria, not invented cases, and does not replace review of a specific transaction or legal, tax, financial or technical advice.