Operational  and Technology Due Diligence for the Middle Market

 

We help middle market investors perform operations, technology, and HR due diligence for acquisitions. We partner with investors and management teams before, during, and after the acquisition to ensure opportunities are rigorously identified, quantified, implemented, and tracked through to realization.

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Value Creation

Build a case for creating value through investment in both growth initiatives and cost reduction with operational improvement

  • Process maturity assessments - opportunities to reduce costs, improve customer quality, and improve effectiveness
  • Build strategic IT and operations roadmaps - reduce operating cost, identify digital growth areas, and 
  • Business cases for key investments and initiatives - better data, better decisions, more nimble and measurable companies
  • Org structure, talent development, and strategic alignment

Risk Reduction

Identify how to mitigate both transactional and operational risks related to business operations, technology, and people.

  • Operations and systems risk profiles - process resiliency and point of failure analysis, critical path risk analyses, and associated contingency planning
  • Compliance and regulatory exposure
  • IT risk assessment - idenfity outdated or underperforming systems, suboptimal operations and infrastructure, and staffing/structural risks in IT
  • HR and talent risk assessment - hiring, staff development, and staff retention; structural risks, and key-man risks

Our Advantage

  • Proprietary methods, frameworks, and tool-sets rooted in Big-4 and Fortune 500
    • RapidAssesment framework for efficiently evaluating each process area of a business
    • Middle-market ValueFocus method to quantify and prioritize key value drivers
    • RCG's "Lab" method of executive alignment and portfolio management
  • Expertise interacting with boards, investors, and the C-suite to identify and vet opportunities
  • Disciplined program management based on value creation roadmaps
  • Hands-on knowledge of the latest technologies to maximize efficiency
  • Extensive network of specialists to address each key area of a target company

Case Studies

Top defense communications manufacturer

Situation: Largest division of a multi-national defense contractor purchased a complimentary business and reached integration value targets without integrating. We we asked to rationalize the operations, structure, and systems of both companies and make recommendations for achieving greater value and long-term opportunities. 

  • Built business case from the ground-up evaluating value opportunities in operations, technology, organizational structure, top-line growth, and merger integration
  • Developed cost and timeline estimates, partnered with executives to get board approval
  • Ran the $60M transformation program to both integrate an acquisition, reduce costs in core operations, and improve go-to-market capabilities
  • Delivered program on-time, within budget, and aligned with key value drivers. Stabilized the business in under 3 weeks.

National Broadcasting Company

Situation: Broadcaster was acquired in a large LBO by a consortium of private equity firms. We were retained to identify cost reduction opportunities and implement a roadmap to meet and enable the debt service schedule of the investors.

  • Centralized all backoffice functions to a single location shared services organization which included accounting, collections, purchasing, and asset management
  • Created and implemented business processes, SLAs, and new ERP and other enterprise systems to enable new shared services organization
  • Concurrently improved existing operating practices around invoicing, collections, cash management, and traffic management to improve accuracy and reduce DSO, leading to over $1M in net value creation

Contact us to learn more