Operational Diligence

Developing solutions for operational success.

In lieu of situations such as acquisitions, divestitures, consolidations, and corporate carve-outs, it is important to reinforce operationally oriented strategies—especially when a shift in the operational footprint or corporate strategy of an enterprise could lead to a lag in operations.

Phoenix has an unparalleled track record of implementing solutions for operational excellence. Our Operational Diligence review, either as a stand-alone engagement or part of the Quality of Enterprise®, 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, and sales and marketing processes.

We provide an in-depth evaluation of these areas in order 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.

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Our Operational Diligence review process is a repetitive yet focused and tailored process that better meets every unique desire of our clients, including all or any one of the following elements.

Organization & Leadership:

  • Organizational Structure / Functional Balance / Responsibilities & Accountabilities
  • Management & Leadership Competency & Capability

Business / Enterprise Planning:

  • Strategic & Tactical Planning
  • Sales Forecasting by Channel / Product Line / Region
  • Master Production Planning
  • Capacity Planning

Through financial and operational analyses and detailed interviews with the company’s executive and support teams, we provide a unique perspective into the various risks and opportunities related 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 has over 35 years of senior leadership experience, delivering industry-specific advice for each unique transaction under consideration. We are well versed in ROI financial calculations of product development and the subtle process requirements needed for successful product development roadmaps 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 requisite experience in evaluating, correcting, and integrating operations of all types and circumstances whether they are local, regional, national, or global in nature. We have specific experiences in integrated facilities, on- and off-shoring operations, and evaluating the right course 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 detailed compensation plans, past individual sales performance data, and future performance profile expectations; we also identify the key drivers to sales success. Through 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 Backup & 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 target companies. The review of compensation and other incentive or bonus programs is essential to 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 a transaction. Our interview and document review processes assure a clear understanding of how these important issues will be achieved.

Our Operational Diligence service focuses in the following areas:

  • Determining where operational lags could occur in lieu of a corporate shift
  • Evaluating the organization’s management and structure
  • Assessing all aspects of business operations
  • Deploying strategies to strengthen the overall health of a company

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