Operational due diligence consulting: addressing implementation challenges
Whether you’re embarking on a private equity deal or undertaking other M&A activity, each acquisition marks the start of a journey. But the road ahead can be uncertain. Reducing the number of ‘unknowns’ pre-transaction can make the difference between success and failure.
The Berkeley Partnership’s operational due diligence consulting services can help. We can provide a rapid assessment to help you identify the operational barriers to growth and the implementation challenges you may face in driving performance improvement and value creation. Working alongside your own due diligence process, we can give you the confidence that your post-transaction plans are well-grounded and reflect the operational reality of the target company.
This was a complex and multi-faceted piece of work for which there was very limited time to understand, analyse, and develop the findings and recommendations. Berkeley worked exceptionally well with the team quickly gaining an understanding and trust which lead to a very open and honest relationship.”
A supply chain and logistics sector client
Berkeley are Palatine Private Equity’s operational due diligence partner
We have conducted over 20 operational due diligence engagements across multiple industries.
In 4 weeks
We developed an organisation blueprint to regionalise a business that ran an inefficient service and spares operation.
In 6 weeks
We developed a comprehensive separation plan covering people, IT and premises as a mortgage brokerage and financial advisory business transferred to new ownership from their holding company.
In 8 weeks
We developed comprehensive proposals for an environmental consultancy to address their operational barriers to growth.
Operational due diligence: providing a comprehensive, yet focused assessment
We have developed an assessment toolkit that enables us to work with you to rapidly review the target company from a wide range of different perspectives. We’ll identify any elements that lack alignment with strategic direction or suggest an inability to effectively scale, and provide focus areas for further investigation if the risk is deemed as material to the transaction.
Operational due diligence consulting that starts with strategy
Our assessment can help you better understand the current strategy and any significant strategic shifts you envisage post-transaction. We will evaluate how well articulated the target’s strategy is, how aligned the executive are, and how strategic investments are governed and executed.
Operational due diligence: spotting the good and the bad
Once we’re clear on where you’re looking to take the business, our due diligence review will reveal the potential trouble-spots, and what is already in good shape. Areas of focus include:
- Proposition
- Customers
- Channels
- Competencies and capabilities
- People and culture
- Organisation structure
- Processes and workflow
- Performance management and KPIs
- Systems
- Change management capability
- Physical assets (including property, physical capacity and logistics)
Operational due diligence consulting that doesn’t duplicate effort
Our operational due diligence services have a distinct scope and are designed to work alongside other due diligence exercises that you are already commissioning.
Where your financial and legal due diligence analyses current performance and future projections, our operational due diligence will assess the link between financial and operational performance. Our consultants will help you look at the key levers in the business and the performance management routines that drive outcomes.
You will likely complete management due diligence to assess strengths and weaknesses and their ability to lead the organisation. Our operational due diligence can complement by evaluating management’s track record in driving the type of transformational change that underpins your investment plan.
While your commercial due diligence will focus on analysing the external market, our operational due diligence consulting expertise will turn inward. Your due diligence will likely include a scan of the external world including environmental, political, societal and regulatory factors. Our operational due diligence will review any risks inherent in the customer or supplier landscape and the ability of your target to maximise the value of its customer and supplier relationships.
As businesses seek to improve their operations, Berkeley can help rapidly assess where challenges are likely to arise and target the right practical interventions. The value of early intervention is hugely significant, both in terms of avoiding wasted expenditure and accelerating value enhancement.”
NEIL MCCLUMPHA, PARTNER
Clients often ask us…
Question 1
How do we assess our needs quickly through operational due diligence?
Question 2
Is our due diligence process fit for purpose?
Question 3
Is our due diligence strategy right for our acquisition?
Question 4
How can operational due diligence help us achieve value?
Question 5
Can operational due diligence help us to identify growth opportunities?
Question 6
How can we use operational due diligence to identify where change is needed?
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