Market Sizing Due Diligence
Chapter I of the seven-chapter CDD spine.
Chapter I of the CDD spine: Market Sizing Due Diligence. The chapter answers the IC’s primary question for this leg of diligence and cites the primary UK sources it draws on. Source: ICAEW Corporate Finance Faculty; BVCA Industry Activity.
Chapter I sizes the addressable market top-down (industry reports, ONS, trade body data) and bottom-up (customer count x ARPU). Triangulation across the two is the only defensible IC slide. Top-down alone is reverse-engineered consultant slop; bottom-up alone is single-source risk.
§ 1.1Primary UK sources
- ONS Business, Industry and Trade (sector turnover, business population)
- Companies House (filed accounts for competitor revenue stack)
- Trade association turnover surveys, named in chapter footnote
§ 1.2Worked example
See /worked-examples/market-sizing-bolt-on/ for a £60m UK bolt-on triangulation.
§ 1.3IC challenge
The IC will challenge any TAM that flatters the synergy case. Match the chapter footnote to the IC-summary slide footnote; do not let them diverge.