Operational Due Diligence

The goal of any Operational Due Diligence is to provide a comprehensive understanding of a target’s operations. It looks to identify opportunities to create value and potential areas of concern across the key operational functions. This allows teams to shape the deal thesis and develop a post-acquisition strategy to enhance performance.

parallax background

More often, potential targets are not operating at their full potential so there are still multiple levers to pull. Through an operational DD, we seek to answer a few core questions:

What are the revenue enhancement, cost reduction and/or margin expansion opportunities for the target? (Base Case, Downside, Upside).
What is the impact on EBITDA and cash flow?
How realistic are the current management expectations? What is the downside risk​?
What are the top the top 10+ initiatives that can provide the maximum value and are more feasible to implement?

​​At Catalycs, we have an Operational Due Diligence toolkit that can be tailored to your needs to deliver insights in a short amount of time.

Click here if you would like to learn more about our Operational Due Diligence approach.