Operational Due Diligence
With any business acquisition, great emphasis is placed on financial due diligence, but buyer focus on operational due diligence is equally important for future profit and cashflow.
Understanding what is really happening within the business at an operating level can flush out potential opportunities and identify risks, putting the buyer in a stronger negotiating position.
We understand how businesses operate day to day and can quickly identify whether the seller is being open with how the business is currently functioning, the strengths and weaknesses of the management and their ability to deliver the current business plans.
Using a detailed checklist of questions Interims will provide an in depth analysis of all aspects of the business. A typical process would include:
- Face to face meetings with directors and senior managers
- Visiting each site to assess operational capability and efficiency
- Quantifying risks with people, processes and facilities
- Identifying opportunities for growth, improving cashflow and the balance sheet
- Detailed investment plans and identified resources to deliver
Following discussion with the buyer and the banks, reports can be tailored to support the investment case:
- Highlighting strengths and weaknesses and identifying plans to reinforce or rectify
- Detailing financial models with best and worst case scenarios
- Develop the 100 day plan
Post sale, Interims can be used to support the management team deliver the agreed plans either by directly stepping in to manage or provide ongoing support through Director Mentoring / Coaching or Business Process Improvement.
To discuss how we can help with your operational due diligence Contact Us.