Pre-acquisition Operational Due Diligence

Challenge

Prological was commissioned to review and assess the operational aspects of a potential acquisition business with the objective of:

Highlighting any areas of concern for Foodstuffs with their intent to buy into the business
Identifying operational risks that may expose the client following their investment

Approach

Prological conduced an independent, non-biased review and audit of key operational functions against the client’s objectives across their risk profile of:

Undeclared/unknown capital expenditure requirements
Areas of business-critical, single-point failures
Robustness of plant and equipment to support 50-100% increased throughput
Network coverage
Quality and reliability of the company fleet
Key personnel
Company vision and focus

Solution

Prological presented the detailed documentation of the investigation and analysis, including associated risks. Additionally the report was a register of operational improvement initiatives with estimated cost and service outcomes.

Paired with a robust financial due diligence investigation our client successfully acquired a 25% stake in the business.