We provide pre-acquisition due diligence support services that deliver a high-level assessment of the procurement savings opportunity at your target acquisition.
Typically, we offer this service to Private Equity clients, corporates considering a merger, or corporates considering acquisition or disposal.
One of the first steps for an organization contemplating a merger or acquisition is to conduct a due diligence exercise on their target business.
Due diligence in mergers and acquisitions
Our team works with you to evaluate the potential for increasing the value of a business post-acquisition through procurement improvement savings. We have the expertise to analyze the available data in short timeframes and deliver a high-level profit improvement range assessment.
This service is provided selectively to clients based on the level of access to data we receive and access to the appropriate management and procurement personnel.
If the target company’s level of spend is over 30% of its revenues, we recommend conducting a procurement due diligence exercise.
Due diligence support services
Our due diligence Opportunity Assessment evaluates:
- Savings range per category.
- Procurement structures and practices.
- People and capabilities.
- Tools and technologies available.
Our deep knowledge of comparable operations allows us to look across broad spend categories and provide a percentage range for achievable savings. These savings are split by category and overall, and they 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 ensure we complete due diligence projects confidentially and in a short period.
Typically, post-acquisition, we update or expand on the Opportunity Assessment with a view to supporting the implementation plan.