MODULE EXAMPLE: Due Diligence

Background Solution Results

Background

Due diligence is a critical part of any M&A transaction. The due diligence process helps the acquiring company explore the validity and accuracy of its valuation assumptions and identify possible hidden areas of value or liability.

Due diligence includes strategic, financial and operational evaluations of the target to:

• assess proper strategic fit
• make realistic financial projections
• facilitate post-acquisition integration of the two entities

Solution

PortBlue's Due Diligence module is designed to help assess the confidence in the attractiveness of a target by leading an organization through a set of prioritized, detailed analyses on the target company. These analyses help highlight issues and concerns that could materially affect the target's value.

PortBlue's Due Diligence module also:

• Develops a framework for managing and coordinating the due diligence process.
• Compiles a prioritized list of required materials for performing the due diligence process.
• Prioritizes and assign due diligence-related tasks.
• Highlights possible areas of uncertainty or risk.
• Understands some of the common pitfalls and complexities regarding due diligence.
• Assesses your certainty regarding the attractiveness of the target.

Each section is composed of multiple subsections, which are prioritized based on the company's circumstances and preferences in the Analysis Prioritization section.

Interim Findings

• A prioritized list of required materials
• A prioritized list of due diligence-related tasks

Summary Results

• A listing of areas where more work or professional help may be required
• An outline showing possible areas of risk to a successful acquisition
• An attractiveness/certainty matrix for the target company for each section and subsection
• An overall attractiveness/certainty matrix for the target company

Sample Input Page (Drill-Down)

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With over 100 pages of "drill-down" guidance, PortBlue's Due Diligence module helps new users with detailed analyses, required materials, and issues to consider when evaluating a target's attractiveness.

Results

Applies Rigor to the Corporate Planning Process

• Provides tools and guidelines to enable the senior executive to assess the current business portfolio from a strategic perspective
• Aids the senior executive in identifying strategic opportunities across the portfolio
• Assists the executive in prioritizing these opportunities for maximum impact
• Defines an actionable set of next steps to pursue the high priority portfolio opportunities

Reinforces Consistency in Business Unit Planning

• Provides tools to help the business unit assess its current strategic position
• Prioritizes diagnostic tools to assist the executive in further refining the business unit's position and identifying key opportunities for business unit improvement
• Defines an actionable set of next steps to pursue the high priority portfolio opportunities (may direct the executive to additional PortBlue modules that address these opportunities in more depth)

Embeds Strategic Issues in Operational Processes

PortBlue modules are designed to operate as a coherent set of business processes. By configuring other PortBlue modules to operate in conjunction with your Strategic Planning modules, an organization can ensure that strategic priorities and initiatives have impact at the operational level: where the rubber hits the road.