Operational Due Diligence
Optimising merger, acquisition or divestment integration programmes supporting corporate change. Our due diligence work is focused on the Environmental, Technical and Operational aspects, structured so that the client is constantly notified of key developments, so that deals can be reviewed and if necessary restructured at an early stage. Potential ‘deal-breakers’ are always raised as early as possible.
Pre-Merger Operational Due Diligence
Where investors spend just over 20 hours on Pre-Merger Due Diligence Analysis, approximately 17% of those investments yield a return of over 10 times the initial outlay. This compares favourably to those who spend less than 20 hours on Due Diligence – where only 5% achieved that return.
If you see a potential 10-fold Return on Investment as attractive, make the call.
Due Diligence is often regarded as a ‘mundane-but-necessary’ box ticking exercise. Our experience suggests that this approach is counter productive, and when non-financial Due Diligence is included it can add significant value to a deal for the client.
We ensure that you gain value for money by avoiding the possible pitfalls that can arise from non-financial aspects and prepare for integration in advance.
Determining whether the businesses are compatible at an operational level. Is there a gap, a fit or an overlap in the People, Organisation, Locations, Processes, Data, or IT?
Post-Merger Integration Planning
Once the due-diligence, decision and signatures are complete – then how do you make it work optimally and maximise shareholder value. Merging two businesses is not simple and requires a very diligent programme to realise the benefits required to make the numbers work.
The rationale for a merger can be as simple as combining two similar companies whose revenue streams are highly complementary, or can be upstream & downstream supply chain integrations.
In order to maximise the benefits is dependent on optimising the merger arrangements to maximise revenue and minimise costs in the longer run