Operational Due Diligence

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Operational Due Diligence

For a significant period now private equity investors have focused on portfolio company revenue growth and multiple expansion to drive returns, while seeing profit margin growth erode. That’s significant because deal teams’ own due diligence often produced more favorable projection of margin expansion.

Our operational due diligence support can assist in bridging this gap. We assess and forecast the true cost to run the business in multiple deal scenarios, including portfolio company combinations, buy-side carveouts, and standalone buyouts. Our approach is tightly integrated with commercial consideration of the business, i.e., the growth strategy of a target is aligned with the operational changes required to drive margin expansion.

We also employ proprietary data and cutting-edge tools to provide unique “outside-in” perspectives on the targets operating health early in the due diligence process, giving our clients a critical edge as they compete for rare, attractive assets. Our operational due diligence dove-tales with our value creation support past signing and closing.

Our teams work closely with clients’ deal teams and management to build effective value creation plans that are implementation-ready at closing. We also provide extensive performance improvement capabilities in post-merger integration, automation, digital transformation, commercial effectiveness and other areas to support management’s efforts to execute profit improvement programs.