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


 
Current Section: Engagements