Operational Due Diligence

Typical Scenarios

CCL have regularly been engaged by organisations to undertake Due Diligence relating to prospective acquisitions and mergers. CCL's clients have included Venture Capitalists and individual businesses.

CCL's approach is detailed, practical and constructive. CCL's work is conducted by a Due Diligence Team offering a wide range of functional skills and possessing substantial experience of mergers, acquisitions and business integration.

Typical Due Diligence Project

A review would focus in principle upon:

  • A detailed review of the company's current operational activities and processes within its supply chain, sales and IT functions
  • The identification of issues arising from this review and recommendations for their resolution
  • A detailed review of the scalability and appropriateness of the company's existing infrastructure in each function to support the growth and business enhancement opportunities.
  • The identification of issues arising from this review and recommendations for their resolution

Typical Issues Considered

Sales

  • What does success look like in selling?
  • Organisational structure and future plans
  • Key dependencies and barriers to success
  • Key elements of the sales process and the importance of relationships
  • Sales management review mechanisms
  • Sales key performance indicators
  • Recruitment, churn rates and retention
  • Role definition
Information Technology
  • Current IT and business strategy
  • Current infrastructure (organisational structure, applications, networks, hardware etc.)
  • IT investment history, cost of IT and contractual obligations
  • Scalability of current infrastructure
  • The impact and use of e-trading (customers - suppliers)
  • Future investment requirements identified and IT options
  • Application Software
  • Disaster recovery provision and business continuity plans
  • IT security
Supply Chain
  • Dependency upon IT; current and future
  • Interfaces with suppliers and customers - electronic or otherwise
  • The use of EDI
  • Goals and objectives (i.e. availability, fulfilment, lead times etc.)
  • Supply chain visibility - internal and external
  • Supplier performance and rating mechanisms
  • Inventory control mechanisms - obsolescence, range management
  • Warehouse automation and processes
  • Replenishment methodology
  • Demand forecasting tools
  • Forecasting methodology and analysis of historical trends and events; responsiveness to changes in demand (i.e. demand triggers)
  • Performance measurement
  • Data intelligence, integrity and consistency
  • Drivers for change

Consultancy Resource

Alongside its core and extensive IT skills, CCL has consultancy resources that embrace specialist skills from Human Resources, Sales, Marketing, Operations and Finance functions. Its Due Diligence Team has in addition substantial merger, acquisition and integration experience previously working as Senior Executives within acquisitive businesses.