Five business fundamentals every middle-market company needs to convert investment thesis opportunities to the bottom-line.
Operational due diligence activities typically focus on stress-testing key value creating assumptions that underpin the investment thesis. The team will use interviews, desktop analyses and benchmarks to form a view on the numbers and expected timing.
However, typically overlooked are the fundamental business enablers that determine the company’s ability to deliver and sustain the identified value within the investment thesis.
Investment decisions are increasingly becoming heavily reliant on value creating activities post acquisition, typically with aggressive timelines. Though initiatives can be daunting to management teams, particularly founder led and family-owned businesses, they move forward with changes but can’t deliver the value on-time as result of inadequate fundamentals. Addressing these deficiencies during diligence increases overall value and enables teams to achieve milestones.
Fundamental Business Enablers
Though each company has specific strategies, systems and processes relevant to their market., there are 5 fundamental business enablers that build the solid foundation for a middle-market company. Our teams assess these fundamentals as a part of our Transaction and Performance Improvement services.
- Business Plan
- Financial Controls
- Operating Model
- Data Infrastructure
- Employee Engagement