Operational Due Diligence
Know what the operations can carry before you sign.
In three to four weeks, two senior operators test whether the target's operations can deliver the plan in your model. You get the red flags, what they would cost, and where the value-creation upside really sits, in time for the investment committee.
Six areas behind the model.
Process & capacity
Whether the sites can carry the growth case, and at what cost.
Supply chain
Supplier risk, tariff exposure, inventory health and lead times.
Cost & margin
Cost to serve, run-rate versus normalized, and quick-win savings.
Systems & data
ERP, reporting, and the integration work you would inherit.
Management team
Depth, key-person risk, and who you need to keep.
Customer operations
On-time delivery, quality and service levels behind the revenue.
Yours to keep.
- Red-flag report ranked by EBITDA and deal impact, shared as found
- Operator's view on the management case: what is realistic, and when
- Value-creation thesis with sized, sequenced initiatives
- Estimate of capex and one-time costs the model may be missing
- IC-ready summary and a debrief with the deal team
3 to 4 weeks.
Fixed fee for one target and up to two sites, delivered in three to four weeks. Multi-site and carve-out scopes are quoted. Travel outside Greater Los Angeles at cost.
Private equity funds, independent sponsors, family offices and corporate acquirers buying lower-middle-market companies with roughly $10M to $75M in revenue, in manufacturing, distribution and services.
- Not financial or quality-of-earnings diligence
- Not legal, tax or environmental diligence
- Built to sit next to your QoE provider and counsel
Before you ask.
How fast can you start?
Usually within a week of signing the NDA and engagement letter. Tell us your IC date on the first call and we will plan back from it.
What do you need from the target?
Data room access, two or three management sessions and access to the main sites. We send a focused request list on day one.
How do you handle conflicts?
We check for conflicts before we sign and never work for both sides of a deal. Findings go only to the party that engaged us.
What about multi-site targets or carve-outs?
We quote them on a call. Carve-outs add the stand-alone cost and the transition services you will need on day one.
Have a deal in process? Talk to us this week.
45 minutes with Jacque or Tamer, not a sales rep. A straight read on whether this is the right step.