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Operations Due Diligence
Smart buyers know due diligence doesn’t stop with the financial reports.
More than half of all post-merger synergies are IT-related, and all will impact operating performance.
When acquiring a new business, you want to understand its operational skills, processes and capabilities. You also want to identify improvement opportunities that can yield increased EBITDA.
Our structured, industry-specific approach helps you assess key operational capabilities, risks and gaps from operations and related technology capabilities. It allows you to understand and prioritize those opportunities to refine your integration strategy for your potential merger or acquisition. Our consultants can make a broad evaluation of each functional area or do a “deep dive analysis” depending on the target’s talent, best practices, and performance relative to industry peers. Our operations due diligence advice will provide critical input to define your post-merger operational improvement initiatives.
Key components of operations diligence, planning and post-close execution
An organization must have several key elements in place to maximize portfolio value. Some key questions companies should consider when contemplating transactions include:
- Supply chain - Do we have high-performance supply chain processes that drive service, define the customer experience and enable the business to manage costs better?
- Finance operations - Is finance a strategic enabler for achieving business goals or just a back-office recording and reporting function?
- Human resources - Are our processes designed to attract, engage, manage and retain talent, across the generational landscape, while remaining compliant in the changing landscape of regulatory and industry standards?
- Technology - Do we have effective applications and infrastructure to facilitate daily operations and revenue generation to enhance the investment thesis?
- Cyber risk and operational risk - Do we have an effective control environment that protects our investment, reducing the likelihood of a data breach, enhancing incident detection and response, and accelerating recovery efforts to limit damage?
RSM's due diligence experience and knowledge also extends into financial and tax due diligence:
Before you do the deal, call us. Our experienced consultants can help you paint a truly insightful picture of the current realities and future possibilities. You’ll be glad you called.