What is Operational Due Diligence?
Assessing the operational viability of an M&A target company for value creation, compatibility and integration into your organization.
Benefits of Operational Due Diligence to Your Organization
Financial returns drive decision-making on equity investments, acquisitions, divestitures, or spin-offs. Achievement of financial returns depends on post-merger integration (PMI) success. Effective operational due diligence will identify the strengths, weaknesses, opportunities and threats to successful PMI and achievement of revenue and cost synergies.
Not just knowing but understanding the technology, talent and operational drivers of the target company is critical to assess competencies, capabilities and have confidence in the plans for the “baked in” revenue and cost synergies. Missteps in operational risk leads to decreases financial returns adversely impacting management teams and investors.
Effective operational due diligence is the foundation for deal valuation, PMI and achieving the desired financial returns.
How Longview Leader Can Help…
Operational due diligence assesses a range of operational risks across an organization such as revenue forecasts, costs, procurement, contracts and legal, regulatory compliance, talent, business resiliency, cyber security, operations and service providers. Longview Leader can identify hazards, assess the deal impacts, formulate the risks with recommended mitigation, so you have the insights for deal valuation and negotiation and successful PMI. We can also access business practices and recommend remediation of any financial control issues identified.
Contact Valerie Nielsen from Longview Leader Corporation to get started
