Case study

Operational due diligence of a construction materials manufacturer

Situation

A private equity company interested in acquiring a stake in a construction materials manufacturer engaged a consultancy to conduct operational due diligence of the company. Delivery Partners helped the consultant with evaluation of management projections.

Our work

  • Collection of company information (data room, bank and auditor reports) and conducting Q&As with industry experts
  • Evaluation of management and PE projections
  • Quantification of potential on top of PE steady projection and restructuring costs
  • Development of additional cyclical scenarios (moderate and severe) incl. quantification of upside and restructuring costs

Results

Due diligence report showing significant additional upside on top of PE projections regarding sourcing, production, marketing and sales, working capital, and CapEx leading to higher than expected EBITA margin with moderate restructuring costs.