Due Diligence and Operations Evaluations
VALCO was engaged to lead the operations due diligence effort for a $25 billion hedge that was considering the lead role in a $500 million management led LBO.
- Reviewed managements' operating forecasts and independently validated the viability of the projected "unit economics" (CAPEX, revenue and costs & expenses)
- Evaluated the "enterprise operating system" deployed at the unit level to determine adequacy of internal controls, transaction processing, management reporting and scalability.
- Conducted a comprehensive review of the real estate portfolio to evaluate markets developed, site viability, current lease commitments; lease cost levels relative to market, other incidental lease terms, and renewal options.
VALCO assisted a $25 billion hedge fund in the operations due diligence for a $700 million investment in a privately held company.
- Validated historic operating unit economics compared to industry standards.
- Identified under performing areas of the business where revenue could be improved and costs could be abated.
- Analyzed management projections; relative to future expansion markets, unit expansion, revenue levels and operating costs.
- Evaluated management's' current effectiveness relative to industry standards.
VALCO was engaged by a leading middle market private equity firm to lead the buyout operations due diligence of a privately held national credit retail chain:
- Validated sustainability of unit economics
- Assessed all aspects of credit management;
- Assessed operating management organization and effectiveness
- Identified opportunity for immediate and long term improvement