Any report that collates, summarizes, and quantifies the feedback obtained from the company's customers in relation to how well their needs have been met and their opinion of how the company's products or services compare with those of competitors.
A covenant report is important for transaction due diligence, particularly those that involve investors taking an interest in a business that will continue to keep the existing debt. The new investor’s interest will be subordinated to debt whether it be subordinated debt or convertible debt.
This information is important for these investors because they will be keen to understand how close the business is to breaching covenants as this event will automatically provide additional rights to more senior lenders that may impact on the Investors’ future rights.
This issue is less of a concern when the entire business is being sold and the existing debt is to be refinanced.
A comprehensive approach to customer feedback can be a key driver of growth in your business as it will:
The information available from customer feedback reports can help investors greatly in their due diligence efforts, particularly for investors why may not be competitors or other existing players in the market.
The reports provide a useful measure of how the company is perceived by the market place as it allows the validity of statements about the quality of the product to be checked. This, in turn, provides an acquirer with greater insight into how vulnerable the company’s existing margins are to price competition.
A customer feedback report helps determine what investment will be required to bring the quality of the product up to the level desired by the acquirer after the transaction has been completed.