Phoenix Transaction Advisory Services Operational Diligence
Phoenix Transaction Advisory Services

Operational Diligence

Phoenix has an unparalleled track record of implementing successful operationally-oriented solutions. We have brought this operational expertise to situations involving acquisitions, divestitures, consolidations, corporate carve outs, or similar shifts in operational footprint or corporate strategy.

Our Operational Diligence review, either as a stand-alone engagement or as part of the Quality of EnterpriseSM assessment, provides a comprehensive assessment of the target investment company's operations in all aspects, including an evaluation of the management talent and organizational structure, supply chain and manufacturing processes, systems and controls, sales and marketing processes, and overall strategic evaluation. We provide an in-depth evaluation of these areas to predict, with greater certainty, the future performance of the target company, and examine, in great detail, the underlying operational health of the business.

While our Operational Diligence review is intended to be comprehensive, it is deliberately flexible and adaptable to each unique transaction's set of requirements, based upon strategic, financial, or bolt-on investment strategy.

Our Operational Diligence review process provides our client the benefits of a repetitive, yet focused and tailored process, to better meet our client's desire to include all or any one of the following elements:

Organization & Leadership:

  • Organizational Structure / Functional Balance / Responsibilities & Accountabilities
  • Management & Leadership Competency & Capability
  • We conduct a thorough review of the organizational chart, while considering both the current and intended future structure of the company. We identify both risks and opportunities within the management team and organizational structure through interviews conducted by our senior professionals, who are experts in the nuanced skill of effective interviewing.

Business/Enterprise Planning:

  • Strategic & Tactical Planning
  • Sales Forecasting by Channel / Product Line / Region
  • Master Production Planning
  • Capacity Planning
  • Through both a financial and operational analysis and detailed interviews with the company’s executive and support teams, we provide a unique perspective into the various risks and opportunities relating to the company’s revenue and production functions. This insight has proven invaluable to our clients in identifying unforeseen capital investment requirements, revenue shortfall risks, and material improvements for both revenue growth and operational efficiencies.

Product Development:

  • Product / Service Strategy & Design
  • Design Engineering
  • Our team provides 30+ years of senior leadership experience in an expansive array of industries. Our professionals deliver specific, industry-level advice relating specifically to the considered transaction and are well versed in the specific ROI financial calculations of product development as well as the subtle requirements of process in achieving successful product development road-maps and product launches.

Manufacturing Operations & Supply Chain Logistics:

  • Vendor Management
  • Material Sourcing & Procurement
  • Production Scheduling
  • Operational Process Controls & Procedures
  • Shop Floor Reporting
  • Inventory Management & Controls
  • Quality Assurance and Control Processes
  • Workforce Management & Reporting
  • Manufacturing Engineering
  • Equipment Maintenance Processes
  • Lean Process Evaluations & Continuous Improvement
  • Our operating senior professionals have the requisite experience in evaluating, correcting, and integrating operations of all types and circumstances be they local, regional, national or global in nature. We have specific experiences in integrated facilities, on and off shoring operations, and evaluating the right course(s) of action for both immediate and long-term strategies.

Sales, Marketing & Customer/Client Experience:

  • Brand Management
  • Marketing Programs / Advertising / Public Relations
  • Salesforce Management / Processes / Controls / Compensation
  • Competitive Landscape / Market Share
  • Distribution Channel Management
  • Customer Service Processes & Warranty Processes
  • Cultural Review: The Customer Experience End-to-End
  • The revenue function is often the most overlooked, yet critical component to the transaction outcome in the long term. At Phoenix, we review in-detailed compensation plans, past individual sales performance and future performance profile expectations, and identify the key drivers to sales success. Through both interviews and process reviews, we examine the customer experience to gain insight into customer retention expectations, customer buying decisions, and the alignment of the target company’s overall strategies and processes to these often-critical issues.

Information Management:

  • Key Performance Indicators & Related Management / Operational Reporting
  • Budget Development & Reporting Processes
  • Information Systems: License Review / Hardware Life Expectancy / Asset Documentation
  • Information System Support Resources / Data Back-up & Security / CAPEX Requirements
  • System Integration Road Map & Risk Evaluation
  • Internet / Website Services & Presentation
  • We provide a practical, hands-on summary review of the target company’s overall information systems to identify potential risks and likely integration suitability in order to meet the investor information requirements. We also professionalize the management information package, and applicably integrate with a strategic buyer’s established system. In appropriate situations, we provide detailed comprehensive technological evaluations in partnership with our technology resource partners.

Human Resources:

  • Compensation / Incentive / Bonus Programs
  • Employee and Management Engagement Communications
  • Regulatory Compliance
  • Company Culture & Overall Human Resource Role
  • Employee Contract Review
  • The human resource area is often a critical source of data in understanding the operations of the target company. The review of compensation and other incentive / bonus programs is essential in understanding how management and staff compensation is aligned or misaligned with the strategic goals and objectives of the target company. Understanding the employment contract agreements in detail assures a clear understanding of the human resource talent at the target company and how best to retain this talent after the transaction. Our interview and document review processes assure a clear understanding of how these important issues are to be achieved.