Due Diligence & PMI
Creating long-lasting value and ensuring industrial performance
Managing risk and maximizing return on investment
Industrial due diligence: an indispensable tool for informed decision-making
Industrial due diligence is crucial before undertaking any merger, acquisition, or consolidation. It is conducted alongside the financial, legal, organizational, and managerial assessments, and it is essential to assess the industrial maturity of the target company and/or its products, to validate its CAPEX assumptions, to identify its growth potential, and to anticipate the operational actions required to effectively launch or relaunch the business. Avencore’s experts conduct in-depth analysis within a short period of time, despite the sometimes limited access to information, in order to provide an accurate view of the target’s industrial performance and competitive position.
A rigorous methodology for a comprehensive, quantitative analysis of the target
- Specific quantitative criteria: we use key performance indicators tailored to the target’s business sector for a specific and objective comparative analysis (e.g. OPEX / MW in wind energy, availability and OEE in the manufacturing industry, etc.).
- An in-depth assessment of the industrial operations: we analyse equipment performance, customer satisfaction, process efficiency and overall operational performance to obtain a complete picture of the target’s industrial capabilities.
- Competitive benchmarking and sector positioning: we compare the target to its competitors and other relevant industrial sectors, in order to determine its potential competitive advantages.
- A detailed analysis of the development potential: we identify opportunities to optimise costs and improve performance.
Post-merger integration (PMI): concrete recommendations for a successful operation
Each post-merger integration (PMI) is unique and requires a tailor-made strategy that takes the specific challenges of the integration and the culture of the two entities into account. In addition to risk analysis, Avencore provides concrete, actionable recommendations to ensure the success of the operation. We can help you define an integration plan that will capture the industrial synergies and the expected performance, manage the operational risks and put the right integration governance in place. On top of managing the integration with you, Avencore pays special attention to building the management team and getting all the teams on board.
From strategic consulting to implementing its recommendations, Avencore’s teams work in the field, as close to their customers and operating divisions as possible, to co-construct tailor-made action plans and ensure the sustainability and viability of the solutions that are being implemented. In addition to results, Avencore creates the conditions for engagement and appropriation by the teams.
“The failure of a merger or acquisition can often be explained by not taking the human factor into account. In addition to the corporate and industrial strategy, there are a number of questions that should not be overlooked: who is the right management team to lead the operation? What is the cultural gap between the two entities? How can we get the teams involved in a transformative, structuring project?”