PRIVATE EQUITY

Operational Due Diligence

Acquiring a business can often result in unforeseen operational risks. A common sentiment firms share with us is their concern for the unknown or areas within the business that they do not properly understand. Conducting a thorough operational due diligence allows you to valuate the opportunity effectively to determine if it is compatible with your objectives.

THE IMPORTANCE OF OPERATIONAL DUE DILIGENCE

How confident are you in the perceived potential of an acquisition target? Do you feel there are unknown risks that could put your investment in peril? Successful operational due diligence requires an unbiased inside view of the company to mitigate blind spots. Operational due diligence can also help you by:

Validating your deal thesis allowing you to complete deals with sound strategic rationales and integration plans
Quantifying the opportunity and increasing confidence that sustainable economic value can be gained from the acquisition
Bringing to light potential risks providing you with better insights that influence when to bid and when to walk away

OPERATIONAL & FINANCIAL ASSESSMENT

How do you determine the upside of an acquisition target? Each company is unique, and we believe in tailoring our approach to each transaction accordingly. This is why our approach starts with understanding your acquisition thesis. By comprehending your vision for the target’s integration into your portfolio and the anticipated upside, we can craft a customized operational due diligence approach. Our methodology often includes key personnel interviews, business process analysis, and a financial deep dive to help you:

Understand and validate the cashflow drivers
Stress test revenue and cost assumptions to determine if targets are realistic
Determine if departments or processes have single points of failure
Assess potential integration with the other portfolio companies
Understand potential risks and determine if a viable mitigation strategy exists

MARKET & COMPETITOR ASSESSMENT

How well is your acquisition target doing in the market? How do they compare against competitors? To assess the true value of the target, it is critical to understand the industry and how the company measures up relative to its competitors. We accomplish this by:

Reviewing competitor profiles to compare strategy, service offerings and financials
Analyzing drivers of industry size and growth to determine the attractiveness of your target within its market
Researching areas of disruption that may affect existing assets
Assessing customer needs, retention rates, and engagement strategies to ease through periods of uncertainty
Benchmarking brand value relative to competition and competitive positioning

POST INTEGRATION ROADMAP

Closing a deal is just the beginning. The real challenge starts with integration planning to ensure the assumed value of the deal gets realized. The comprehensiveness of your initial due diligence and the speed of integration will define the complexity for the path forward. Let us help you:

Feel prepared from a day 1 readiness plan to day 100
Understand upfront investments that need to be made in systems and people
Alleviate the reputational risk associated with a poorly executed integration
Determine the exit strategy if it does not go as planned

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THE #TPGDIFFERENCE | CLIENT TESTIMONIALS

“While I have rarely been a proponent of consultants, The Poirier Group and their supportive approach have positively changed my view to the immense value that the right consulting organization can bring.”

“Your excellent communication and overall leadership was appreciated. I felt like our two groups were true partners on this project and achieved success together. Thanks again for you and your team.”

“Overall, I would give The Poirier Group an A+ in solution generation, service delivery and providing with a highly talented team to work with. Great work”

"Just want to acknowledge the excellent presentation yesterday. It was thorough, comprehensive and well received not only by the Steering Committee but even more importantly by owners. The presentation inspired their confidence in The Poirier Group and in the direction we are moving in this comprehensive process. Great job."

“Looking back on our time with The Poirier Group, we would not have been able to achieve our inventory management and overall business objectives without their services. If you are considering an engagement with The Poirier Group, I highly recommend them.”