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Operational due diligence

We believe that failure to grasp an understanding of any operational issues of the business during the due diligence period can lead to incurring large unforeseen costs or delays to the implementation of operational strategies in the post-deal process.

As PwC Transaction Services team, we provide Operational Due Diligence Services to our clients, which usually involve a comprehensive review of the operational and IT capabilities of the companies to ensure that the performance, costs and capacity of the businesses can meet the forecasts and targets set by the business.

Our Transactions Operations team comprises operations, finance and technology consultants which have significant hands-on industry experience. Our professionals have a strong track record of working on a range of Due Diligence, Operational Improvement and IT Effectiveness engagements. Each member of the team adds significant value to the due diligence process pursuant to their expertise and industry focus, also drawing on the experience and resources of PwC’s worldwide offices and global knowledge base.

Potential issues

Based on our experience we have listed below some potential issues that may be observed in a target business during a typical operational due diligence work:

  • Costly and inefficient business processes, especially in finance & accounting, procurement and operations units,
  • High level of manual or insufficient regulatory and management reporting processes and reporting formats,
  • Lack of corporate governance structures and performance management systems in place,
  • Significant upgrading or renewal investment needs for legacy IT platforms,
  • Lack of mature and systematic strategic planning, budgeting and forecasting processes,
  • High risk of prolonged post-deal integration and increased overall cost of integration activities.
How can PwC help you?

We can help you attain the strategic benefits you plan from the deal by:

  • Providing a clear picture of the scalability and future capacity of the business,
  • Identifying key areas where further efficiency increase and cost reduction are possible,
  • Ascertaining short and medium-term investment needs required while clarifying current and planned strategic, capital and operating expenditures,
  • Defining improvement opportunities for increased value from operations, finance function and IT infrastructure,
  • Pinpointing key areas that require immediate attention in the post-deal process, enabling you to prioritise your resources effectively and to return business as usual rapidly,
  • Providing input on the issues identified during financial due diligence (e.g. appropriateness of certain normalised EBITDA adjustments, variances, causes and veracity of management explanations).

We can help you lead a less cumbersome and more efficient due diligence process by:

  • Understanding buyer/investor needs and providing focused, issue-oriented work and inputs in a short timeframe,
  • Providing value-added industry-level expertise and know-how based on our consultants’ prior industry experience and PwC Global Best Practices® database.
Our Operational Due Diligence Services include:
  • Assessment of functional areas (Finance, Sales, Marketing, Production, Distribution, IT etc.) based on key performance criteria and operational drivers,
  • Value chain and business process review,
  • Assessment of MI and corporate performance management systems,
  • Organisational delivery capability assessment,
  • Synergy review and validation.

Contact us

Tolga Baloğlu

Tolga Baloğlu

Advisory Services Partner

Tel: +90 212 376 5365

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