With fewer good acquisition targets and high deal prices, companies pursuing the UK must be certain that their targets can create value quickly. Increasingly buyers are performing strategic and operational Due Diligence to truly understand where value lies within the target company and to uncover any hidden issues or risks. Increasingly companies are performing Operational Due Diligence in an effort to capture value sooner and capitalize on top and bottom line improvements immediately after closing the deal. Our approach to Operational Due Diligence focuses on growth and cost efficiency opportunities. I focus on :
Marketing & Sales capabilities and functions offer the greatest scope for increasing growth. I assess the company's overall strategy and assess if their investments and resources are targeted on the most promising market and customer sectors. I also assess the Salesforce structure and processes. Pricing, Channel and Customer profitability are other areas of focus. I recommend how a company can increase margins by more effective Pricing strategies and also improve Customer coverage by improved Rotes to Market.
I look for opportunities for network optimization and the relocation and consolidation of manufacturing sites. We also look for poorly aligned processes, and underutilized assets. I identify savings through increased asset effectiveness, improved efficiency and automation.
Procurement often provides a major source of value creation. I look for opportunities to align purchasing across divisions, increase transparency of external spend and improvements to the Supplier management processes. I also look for opportunities to reduce costs via Strategic Sourcing and E –Auction programs.
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