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Due Diligence Support

Efficio provides Due Diligence support pre-acquisition, delivering a high level assessment of the procurement savings opportunity at a target acquisition.

We offer this service typically to Private Equity clients, corporates considering a merger, or corporates considering an acquisition or disposal. One of the first steps for an organisation contemplating a merger or acquisition is to conduct a ‘Due Diligence’ exercise on the target business.

Efficio’s team works with clients to evaluate the potential for increasing the value of a business post-acquisition through procurement improvement savings. We are experts at analysing the data available to deliver a high level profit improvement range assessment in a short timeframe.

This is a service we provide selectively to clients based on the level of access to data we receive and access to the appropriate management and Procurement personnel.

If the level of spend is 30%+ of revenues of the target company, we would recommend conducting a procurement Due Diligence exercise.

How we work

Our high level Due Diligence Opportunity Assessment evaluates:

  • Savings ranges per categories
  • Procurement structures and practices
  • People and capabilities
  • Tools and technologies available

Efficio’s deep knowledge of comparable operations allows us to look across broad spend categories and provide a percentage range for achievable savings. These are split by category and overall, and outline the potential for Procurement’s contribution to profit/EBITDA uplift.

The final element of our Due Diligence output is a high level Implementation plan outlining the actions required to achieve these savings.

Our unique range of expertise and insight allows us to complete this process confidentially and in a short time period.

Typically, post-acquisition we will update or expand on the Opportunity Assessment with a view to supporting the Implementation plan.

Five procurement questions every private equity firm should ask
Five procurement questions every private equity firm should ask

Efficio’s detailed spend analysis at a services group in 2015 helped identify savings that have since generated €250m in equity value for two private equity clients

Procurement: Five things PE firms should consider
Procurement: Five things PE firms should consider

Private Equity groups need to consider five things when addressing procurement: financials, organisation, cost reduction, approach and tools.