Pre-acquisition Operational Due Diligence

Food service supplier & grocery wholesaler NZ

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

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:

  1. Undeclared/unknown capital expenditure requirements
  2. Areas of business-critical, single-point failures
  3. Robustness of plant and equipment to support 50-100% increased throughput
  4. Network coverage
  5. Quality and reliability of the company fleet
  6. Key personnel
  7. 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.

Please contact us for more information