consulting group

Operational Due Diligence – Leading to Purchase

  • Project Highlights

    • Client: Private Equity Fund

    • 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 fund was investigating purchasing a company that included a jobbership and number of company sites and dealers sites.  This was the first of a planned series of acquisitions that met their investment criteria.  Post-acquisition the company would install its own leadership team with selected members of the existing staff being retained.

    Activities

    • Evaluated the company’s current informal marketing strategy and positioning.

    • Analyzed its historic results and benchmarked them against a variety of metrics.

    • Reviewed the company’s current organizational structure and personnel.

    • Conducted a review of existing compensation including bonus formulas and provided compensation benchmarks.

    • Examined its existing jobber contract.

    • Evaluated its foodservice operations, results, and strategy.

    • Benchmarked its current facilities (exterior and interior), operations and marketing against industry standards and best practices.

    • Provided examples of low cost improvements to the facilities, and marketing actions that could be taken to improve results.

    • Reviewed existing information systems including applicability and scalability.

    • Conducted a risk assessment and provided a number of go forward issues/concerns.

    Deliverables

    • Provided a report designed to for a non-industry knowledgeable client including a number of informational attachments.