consulting group

Operational Due Diligence – Leading to Investment

  • Project Highlights

    • Client: Private Equity Firm

    • Project category: Operational Due Diligence

    Project Overview

    b2b Solutions works with Private Equity funds to provide operational due diligence regarding potential investment/acquisitions of convenience retail / petroleum marketing companies. We analyze historic results on a store by store basis and corporate level to determine if there are variations that require further analysis. This includes an analysis of trends and benchmarking that data against industry standards. Based on this analysis we develop a questionnaire to complete with current management to ensure our client is presented with the best information available.

    Our process also includes visiting all or a representative sample of the locations (depending on the number on units involved). During these store inspections we benchmark current operational and marketing against industry best practices. Locations are graded on a number of criteria. Photos are taken to document our findings.

    In addition, provide clients a review of the organizational strengths and weaknesses. This can include structural and/or personnel. Areas covered can be current information systems, reporting formats, and scalability.

    Clients are provided an in-depth report including our analysis, on site findings, and recommended next steps.

    Private equity firm was looking to invest in a chain seeking funds allowing it to grow utilizing its unique positioning. The investment would not necessarily include changes in current management.

    Activities

    • Analyzed existing operations including developing financial, operational and marketing benchmarks.

    • Reviewed the company’s go forward strategy of remodeling existing units to the new positioning and its growth strategy including site selection criteria.

    • Conducted an analysis of the company’s Proforma.

    • Evaluated its current and future foodservice operations, results, and strategy.

    • Assessed its current and proposed site and store layouts.

    • Reviewed its current organizational structure, information systems, and reporting.

    • Conducted a risk assessment.

    • Analyzed its target market current c-store and fuel marketing.

    Deliverables

    • Provided client with a report with our analysis, benchmarking and other findings.