We’re about being there for our clients when it really matters. When it absolutely has to be right. Doing the right thing is both our ethos and sweet spot. And it’s why clients turn to us again and again.
After graduating in 2010 from the University of Nottingham with a degree in Finance, Accounting & Management, I began my professional career at a US private equity firm. My role in Corporate Accountin...
Katy Spencer, Consultant
View Katy now
It's the people that make Berkeley different to other consultancies.
Bright, friendly, down-to-earth people who are both thinkers and doers. Working by your side, as consultants and colleagues, to get the right results.
Whatever your long term career goals, we’re here to support you. Through an open dialogue, we help our people to build the capabilities, experiences and networks they need to boost their careers.
The many sides of operational due diligence
Home > unspun > unspun 31 - Berkeley New York > The many sides of operational due diligence
Due diligence processes are typically attuned to the commercial, legal and financial aspects of a potential acquisition.
Forensic, historical focused assessments of past performance and positioning are used to evaluate upside opportunity and downside risk. The current management team is assessed to determine whether it can be brought onside to work with the investment agenda. But too little attention is paid to a critical aspect of due diligence that can blindside the investor: the risk inherent in the target’s operating model.
Improved company operating performance is central to driving returns. The opportunities to extract value from pure financial re-engineering of acquistive roll-ups are few and far between. Companies and their acquirers, are more attuned to the importance of free cash flow as the primary arbiter of financial health and financial re-engineering cannot alter that.
Roll-ups involve high transaction costs and require long-term, stable markets which, given the current rate of disruption seen across many industries, represent uneasy assumptions. That leaves operational improvement as the principal route for value enhancement.
The full article appeared in the Sunday Telegraph on 7th December and can be viewed here.
We have placed cookies on your computer to help make this website better. You can change your cookie settings at any time. Otherwise, we'll assume you're OK to continue.