Due Diligence

Assessment provides Clarity

The operations audit helps investors understand what they are buying; it delivers the foundation for developing the right strategies to achieve the desired values and synergies from a merger or an acquisition. Traditional Due Diligence efforts focus on validating financial statements and the sales funnel. We differentiate ourselves by auditing the entire value-chain, end-to-end, uncovering the hidden problems and potentials in the areas of Operations, Engineering, Quality, and IT—all of which are critical to the long-term success of a merger.

Due Diligence Diagnostics (DDD)

• Purpose: identify problems and opportunities
• Application: pre-merger evaluation, benchmarking
• Process: assess value chain performance PLM, SCM, CRM, OPS/MFG
• Duration: 1 week for a 'Quick Scan', 1 month for a 'Deep Scan'
• Deliverable: diagnostics report, benchmark ranking, gap/fit assessment
• Impact: clarity as foundation for effective decisions

Assessed Dimensions

1. MANAGEMENT – ability to plan, motivate and execute:
   Strategy deployment and tactical planning
   Budgeting and financial control
   Goal-setting, performance and consequence management
   Negotiation and conflict resolution|
2. PROCESS – ability to meet the needs of the customer (VOC) and business (VOB):
   Organization and communication
   Execution, problem solving, deviation management
   Innovation and renewal
   Learning, skill-building, people development
3. SYSTEM – infrastructure, accessibility, availability, quality of information:
   Planning and manning (CRP, MRP)
   Costing (FIM, ABC)
   Information value, accessibility, protection (IT, IP)
   Quality, continuous improvement, defect correction (QM, ISO, Six Sigma)
4. PEOPLE – capability, motivation, mindset to meet business-needs:
   Behavior, how people act
   Knowledge, critical know-how
   Skills – critical capability

Assessment shows the 'Big Picture' 

• Assets – plant, equipment, inventory
• People – capability, mindset, motivation
• Structure – documented vs practiced
• Baseline – current performance vs benchmark
• Potential – constraints, dysfunctions, inefficiencies
• Strengths – source of competitive advantage to enhance

Contact us for an objective operations assessment – 'Navigating to Results'.