Operational Due-Diligence

Operational Due Diligence started with the need to support our equity firm partners during the recent difficult sellers market. There is need to understand the current capabilities of the potential acquisition and the improvement that can be driven over a specific time period. The Operational Due Diligence allowed the equity partners to justify the investment and be much more aggressive when looking at current and future values.

Our Operational Due Diligence package included multiple days on-site spending time evaluating the financial current condition along with developing a clear financial target condition. This is based on as much information that can be uncovered through balanced approach of spending time directly on the shop floor to understand efficiencies, spending time with the leadership team to understand the strategies, and analyzing the current financials. Each area is necessary to bring together a cohesive story and tactical plan to drive more value within the company.

Every due diligence package has a detailed breakdown of the key areas of opportunities and the relevant financial impact they provide to the overall strategy. Each due diligence package will be uniquely created based on the request of the purchaser and the make up of the company being evaluated.

APPROACH

1-01

Every acquisition must be looked at on a very individual basis. Our initial step is to gather as much information as possible before spending any time on site. This learning and pre-work will include gathering financial documents, strategy documents, and any industry information possible to build a basic understanding of the company. This provides a good basis and allows us to be much more efficient when on-site with the leadership team.

2-01

This is where we uncover the important information needed to properly evaluate from an operational perspective.  We will spend time in each needed area of the company to find what is holding the company back from achieving success in terms of performance, cost, lead time, quality, and customer service.  Each are will have a tie back to the financial performance of the company.

3-01

With each due diligence package, we provide a plan to help you achieve the results that we have mapped out.  Every investment doesn’t have a clear plan of leadership and execution, so we provide you with an option of using us if you desire.  There will be a clear ROI based on the predicted time necessary to achieve the overall results for the organization.  This is provided as another data point for your investment decision.

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