Strategic and Operational Assessment:
Identify value drivers for the acquisition, including technology/ products, key personnel, market access, revenue enhancement, cost savings, and synergies.
Assess marginal costs and strategic fit within the larger buyer organization.
Review the company's operating model, including key systems and processes, change management processes, and documented procedures.
Examine the organizational structure and primary/support activities.
Product and Service Evaluation:
Summarize tests, evaluations, studies, surveys, and data regarding existing and under-development products/services.
Identify key performance indicators, value drivers, and cost drivers.
Evaluate sales and marketing procedures, CRM systems, lead generation practices, and supply chain participants.
Analyze manufacturing sites, products manufactured, personnel, shifts, and capacity.
Supplier and Distribution Analysis:
Document supply chain processes, including delivery times, inventory availability, and transportation costs.
List main suppliers, discounts, terms, credit limits, and distribution channels.
Review third-party relationships, including developers, software duplicators, and manual publishers.
Financial Implications:
Determine facility and equipment overhead costs for varying capacity/utilization levels.
Ascertain capital replacements needed and periodic maintenance costs of equipment.
Estimate costs for modifications to increase capacity.
Legal and Compliance Review:
Describe the use of toxic chemicals in production and any related EPA or other investigations or claims.
Itemize synergies created by the acquisition, distinguishing between cost reductions and revenue increases.
Product and Service Specifics:
Summarize product recalls, warranty claims, new product developments, and ongoing R&D projects.
Review marketing materials, product descriptions, and policies related to pricing and warranties.
Product Development Insights:
Determine which products are nearing the end of their life cycle and the revenue attached to them.
List development projects, their unique attributes, and the key development personnel involved.
Evaluate the company's investment in development relative to sales and compare it to competitors.
Production Process Evaluation:
Assess the industrial engineering staff and their plan for process improvement.
Review the company's safety record and history of service rework.
Evaluate the company's manufacturing systems, constraint management techniques, and process obsolescence.
Property, Plant, and Equipment Analysis:
Obtain a list of real properties and review title opinions, surveys, leases, and encumbrances.
Review lists of machinery, equipment, and personal property.
Service Development Assessment:
Analyze service offerings nearing the end of their life cycle and the revenue attached to them.
Review the service development pipeline, unique attributes of new services, and the key development personnel.
Assess the threat of obsolescence for each significant service offering and compare with competitors.