Operational Due Diligence
Cradan’s operational due diligence focuses on the reality of how a business runs. We look beyond formal process documentation to understand how people, systems, and resources combine to deliver results. Our goal is to surface the true operational drivers, risks, and opportunities that matter most to value.
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Our process is grounded in practical analysis and is always outcome-oriented. We prioritise the factors that can make or break a deal, highlighting strengths to build upon, identifying areas for improvement, and surfacing risks that could impact future performance or stability. The recommendations we provide are clear, actionable, and designed to support both immediate decisions and longer-term integration.
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We work in close collaboration with subject matter specialists and operational partners who bring deep, hands-on expertise. By fully integrating our operational findings with financial, commercial, and technical reviews, we deliver a joined-up perspective and ensure every insight supports the wider diligence process.
Organisational Structure and Management Assessment
We assess how the business is structured and led, considering management capability, experience, and alignment with strategy. This review covers reporting lines, decision-making authority, succession planning, and leadership bandwidth. By looking closely at both formal organisation charts and how work happens in practice, we identify strengths to build on and potential leadership gaps that may present risks or challenges to future plans.
Supply Chain and Procurement Evaluation
We examine the full supply chain, focusing on supplier quality, resilience, contract terms, and dependency risks. The review assesses how procurement is managed, the flexibility of supply arrangements, and exposure to cost or supply disruption. This work highlights opportunities for consolidation, improved negotiation, and de-risking, as well as readiness to support growth or respond to market changes.
Cost Structure and Efficiency Analysis
We take a detailed look at both fixed and variable costs, exploring direct expenses, overheads, and how resources are allocated. The analysis considers cost competitiveness, margin drivers, and areas where efficiency can be enhanced through process improvements, technology, or strategic sourcing. We also identify potential risks of cost escalation or hidden inefficiencies that could affect future profitability.
Key Processes and Workflow Review
Our team maps and evaluates critical operational processes across functions such as production, sales, fulfilment, and customer support. We look for bottlenecks, manual interventions, duplication, and opportunities to streamline workflows. This analysis helps uncover hidden inefficiencies, gaps in control, and points where value is lost, as well as opportunities for automation or standardisation to support scaling and margin improvement.
Operational Performance and KPIs
We investigate how operational success is measured and managed, reviewing the key performance indicators used to track business health. This includes how targets are set, whether metrics drive the right behaviour, and how information is reported and acted upon by management. Our analysis reveals if the business is proactively managing performance, and where improvements in measurement or management discipline could deliver better results.
Integration Readiness and Change Capability
Our review considers the business’s ability to adapt to change, whether through integration with a new owner, restructuring, or scaling operations. We look at cultural alignment, previous experience of change, and the robustness of change management practices. This assessment identifies potential barriers and enablers, helping clients understand what support or planning may be needed to deliver post-deal value.