§ CHAPTER V
V.
Financial-Commercial Bridge
Chapter V of the seven-chapter CDD spine.
§ DIRECT ANSWER
Chapter V of the CDD spine: Financial-Commercial Bridge. 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 V reconciles the CDD revenue and EBITDA bridges to the QofE workbook. The CDD team supplies the commercial logic (price, volume, mix, churn); the QofE team supplies the accounting build (run-rate, one-offs, pro-forma adjustments).
§ 1.1Standard reconciliation
- LTM revenue per QofE = chapter I sizing band x chapter II customer count
- EBITDA bridge tied to chapter IV unit economics
- One-off adjustments flagged to risk register (chapter VI)
§ 1.2Hand-off conventions
Weekly stand-up between CDD lead and QofE manager from day 3 onwards. Locked numbers by day 8.
VERIFIED 21 JUN 2026NEXT REVIEW 21 SEP 2026SRC: ICAEW CF; BVCA Industry Activity 2025-26