Operational Due Diligence services for M&A

ADecTec’s expertise adds transparency and insight

Long before any corporate mergers or acquisitions are finalized, the task of due diligence is a primary responsibility. In the case of a manufacturing, logistics, or similar enterprise, operational due diligence cannot be overvalued. ADecTec’s team comprises operations experts with extensive experience in manufacturing, logistics, and related industries.

A deep assessment of a company’s operations is foundational for successful mergers or acquisitions. Deals that look profitable on paper can end up in failure when internal inefficiencies within the business are overlooked. ADecTec explores the organization’s systems of people, processes, equipment, materials, technology, engineering, information, and facilities management. Our examination goes far beyond the financial analysts’ view to see the functional situation. Because this type of analysis is time-consuming and requires specialists with deep experience in operations and continuous improvement practices, it is too often overlooked, to the detriment of the deal’s success.

When purchasing companies do not engage in deep due diligence prior to a merger or acquisition, plans for profitability are often not fulfilled. Instead, risks increase and quicker and higher-value opportunities for profit are missed.

In many companies, strategic operations improvement initiatives including Lean and Six Sigma ultimately fail to meet the goals for which they were implemented, despite the company’s best intentions. ADecTec’s operational excellence due diligence team determines the reasons for the operations improvement failure, recommending a continuous plan that sets up an atmosphere that facilitates ongoing improvements.

The practical difference between due diligence conducted by traditional analysts and that done by ADecTec is the scope and depth of the investigation that we engage in. Rather than be content with the simple improvements that are more traditionally recommended, ADecTec focuses on a deeper investigation that uncovers more significant and profitable opportunities for improvement. We reduce complexity and costs in the global supply chain, encouraging innovation that leads to profits, and use our extensive expertise in technology to bring about continuous operational improvements.

Because ADecTec does not use a “canned” approach that tries to fit all clients into the same mold, we approach each new engagement with an open mind, ready to see the individuality of the situation. Our team then draws on their portfolio of experience and knowledge to design an individual solution, aiming for both maximum short-term improvements and far-sighted approach to uncovering hidden opportunities for increased profitability.