Operational Due Diligence: What Buyers Check in Your Business ft. Tim Van Mieghem

When business owners think about due diligence, financial statements, tax returns, contracts, and legal documents usually come to mind. But buyers are also trying to answer a more fundamental question: How well does this business actually operate?

In this episode, Pat Ennis and Walter Deyhle welcome back Tim Van Mieghem, Founding Partner of The ProAction Group, for a discussion about operational due diligence and why it matters long before an owner decides to sell. They explore the operational risks and opportunities buyers look for, including owner dependency, undocumented processes, weak management, customer concentration, poor KPIs, and lack of accountability. 

For owners, the important takeaway is that operational due diligence doesn't have to begin when a buyer arrives. Looking at your company today through the eyes of a future buyer can reveal weaknesses, reduce risk, improve performance, and uncover opportunities to increase business value well before a transaction. 

In this Episode we discuss: 

• What operational due diligence is and how it differs from financial and legal due diligence
• What buyers are really trying to learn about a company's operations 
• What gives a buyer confidence that the business can continue performing after the owner exits
• Common operational issues that can reduce value or create buyer concern
• The impact of owner dependency and undocumented processes
• Why management strength, KPIs, and accountability matter
• Operational improvements owners should make two or three years before going to market
• How technology, automation, data, and AI are changing operational due diligence
• Why owners should prepare for operational due diligence before a Letter of Intent is ever signed 

Guest:  Tim Van Mieghem, Founding Partner, The ProAction Group

Tim Van Mieghem is a Founding Partner of The ProAction Group, an operational consulting firm that has served middle-market companies since 1995 by helping them identify, quantify, and uncover latent value. ProAction primarily serves private equity firms and their portfolio companies. Tim's expertise includes manufacturing, logistics, and inventory management, and is showcased in his book Implementing Supply Partnerships and his forthcoming book, Shocking Profit. He also hosts the Shocking Profit podcast. 

Connect with Tim:  https://www.linkedin.com/in/tim-van-mieghem-5ba91b/     https://www.proactiongroup.com/
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Learn more about working with Pat and Walter at ennislp.com 
Connect with Pat: linkedin.com/in/pat-ennis-25b4a111/
Connect with Walter: linkedin.com/in/walter-deyhle-cpa-abv-cff-maff-cexp-cepa-57386614/

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DISCLAIMER: The information in this presentation is provided as education only. 
Neither the presenter nor ENNIS Legacy Partners is engaged to render legal, accounting, or other...