Operational due diligence Bookmark has been added
Operational due diligence
Methodical assessment and delivery of synergies and value
Deloitte offers you a well-rounded picture of the operational organization of the company to be acquired and provides insight into the most important value drivers and risks in the heart of the company. This information facilitates your valuation and, in addition, assumed synergies can now be properly tested and quantified.
The sharp increase in M&A activity means more than ever a focus on operational matters as a driver for the value of a transaction. Both strategic buyers and Private Equity houses are increasingly looking for ways to steer the value of a transaction, looking at operational improvement potential and proactively managing operational risks. Banks are also increasingly looking for the operational aspects of a transaction by looking more critically at the business plan, the operating performance and the hardness of supposed synergies.
Our Operational Due Diligence team combines in-depth expertise in the field of operational structuring and performance improvement, thereby creating insight into operational risks and possible upsides of a transaction. By combining sector specialists and functional experts with Operational Due Diligence experts, we are able to provide in-depth insight into both pre-deal diligence and post-deal value creation.
Our team can:
- Provide insight into the composition and nature of the cost structure and assess the complexity and efficiency of the operational organization
- Review budgeted cost reduction plans, restructuring plans, synergy plans and so-called "bid defense" plans
- Assess operational risks, for example in the carve-out of a division from the parent company or in the feasibility of large-scale cost reduction programs
- Opportunities for further cost reductions Identifying and offering support in developing a performance improvement plan
- Develop plans for the first 100 days of integration to make optimal use of the momentum in realizing value creation and operational upsides
- Conduct a diligence on IT systems, the IT cost structure, the stability and age of systems, current IT projects, and assess the complexity of a carve-out or integration of systems
- Conduct a diligence on the HR organization, demographic characteristics, remuneration systems and benefits, talent and recruitment, job vacancies, and assess the complexity of personnel integration