Our operational due diligence assistance focuses on cost and capital expenditure and involve analyses of historical and current operating performance (processes) of the target company. The main focus is to identify and quantify potential operational enhancements and to calculate synergies that might be achieved as a result of the considered transaction. Our recommendations lead to the elimination of operating bottlenecks, the optimisation of existing production capacity and the evaluation of potential production capital expenditure requirements.

Operational due diligence services can include:

• Analysis of operating costs and cost reduction programmes included in the forecast;
• Assessment of operational capacities of the target;
• Review of performance against industry standards;
• Identifying and assessing potential upsides and bottlenecks;
• Modelling of operating costs and capex under different scenarios. 

Because of our work in this regard, the above areas can be properly addressed in the target’s valuation during the transaction.