Quality of Operations™ and Technology Due Diligence Identified Key Personnel Risk
The Challenge
TriVista was hired by a private equity firm to conduct a Quality of Operations™ and Technology Due Diligence assessment on a leading professional services consulting firm. The target company is a platform investment opportunity that the private equity firm plans to support with the continued growth of the business through both organic and M&A expansion.
Our Approach
TriVista conducted a due diligence assessment of key business value streams and associated IT support systems with a focus on:
- Mapped process from lead-to-quote and order-to-cash value streams to identify key risks and opportunities for improvement
- Assessed talent management, project management, culture, and labor utilization tools and techniques
- Assessed technology system business enablement, scalability, and governance
The Results
No operational or technology related red flags were found, however, a concern around key personnel risk was identified and recommended to mitigate the risk by assuring key leadership rolls a significant portion of their proceeds into the new legal entity post close of acquisition. Other post-close recommendations included:
- Optimizing operational management controls by linking projects, timecards, expense management, and finance through Salesforce.com to enable a single, cohesive environment to minimize more manual consolidation practices that are currently in place
- Consider moving additional employee service lines into other staff augmentation verticals that are at a higher end price point ($200+ for higher end IT, etc.) versus trying to build intellectual capital around structured offerings like M&A support, Merger Integrations, etc.
- Transition to move consultant employee workforce into a more traditional employment contract versus the 1-year contract employment agreement contracts currently in place to allow for an employee development program and path for career progression
To find out how TriVista can help you achieve similar outcomes, contact us today:
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