Due Diligence Part 2 – Operations

We dive deep into what makes your business successful.
This Due Diligence review covers your operations, client relationships, systems, and commercial arrangements.

Start Part 2 - Operations Assessment

Your Due Diligence Journey

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Foundation Assessment • Operations Review • Assurance Phase

What This Operations Review Covers

Now that we understand your foundation, we dive deep into what makes your business successful. This comprehensive review examines your corporate structure, client relationships, systems, and commercial arrangements.

Why We Need This Detail

Understanding your operations helps us identify growth opportunities, assess operational strengths, and structure a partnership that enhances rather than disrupts your successful business model.

Section 5: Corporate Structure & Operations

Complete corporate governance and ownership structure
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Why do we need complete corporate records?

Corporate records provide the legal foundation for understanding ownership, governance, and decision-making processes. This information is essential for structuring any partnership arrangement.

Think of this as: The detailed blueprint of how your company is legally structured and governed.

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Corporate documents you'll need
Corporate Registers
All registers including shareholders, directors, committee minutes, share certificates
Share Capital Documentation
Details of authorised/issued capital, classes, voting rights, restrictions
Ownership Schedules
Registered and beneficial ownership details, trust arrangements
Professional Advisers
Contact details and service agreements for auditors, bankers, advisers
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Additional information required
  • Options and warrants granted over shares (if applicable)
  • Outstanding shareholder loans (if applicable)
  • Share transfer restrictions and encumbrances
  • Shareholder agreements and restriction documents

Section 6: Business Operations & Intelligence

Client relationships, systems, and operational performance
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What operational insights are we seeking?

We want to understand what makes your business successful - your client relationships, systems efficiency, pricing strategy, and operational dependencies. This helps us identify strengths to preserve and opportunities to enhance.

Focus areas: Client portfolio analysis, satisfaction metrics, technology systems, vendor relationships, and pricing strategies.

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Business intelligence you'll provide
  • Client portfolio analysis (geography, demographics, tenure, revenue metrics)
  • Client satisfaction ratings and feedback analysis
  • Information systems details (vendors, SLAs, upgrade schedules, integration)
  • Third-party dependencies for software/hardware support
  • Pricing policies and changes over the past 3 years

Client Information

We need comprehensive client data including how they selected your business and satisfaction metrics. This shows us your competitive advantages and client retention strengths.

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Supporting documentation
Client Analysis Reports
Detailed client lists with revenue, FUM, demographics, and selection criteria
Satisfaction Studies
CATScan reports or similar client satisfaction analysis and client win/loss data
System Documentation
IT system details, SLAs, independent system reports
Vendor Agreements
Support contracts and dependency documentation
Pricing Analysis
Fee schedules, market research, pricing strategy documentation

Section 7: Commercial Agreements & Legal Framework

Key contracts, partnerships, and employment arrangements
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Why do we need to review all commercial agreements?

Commercial agreements define your business relationships, obligations, and constraints. Understanding these arrangements helps us structure a partnership that works within existing commitments and identifies key relationships to preserve.

Key areas: Supplier relationships, partnerships, property arrangements, and employment structures.

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Commercial arrangements to document
  • Material supplier contracts and service agreements
  • Joint venture, collaboration, and partnership agreements
  • All property leases (real and personal property)
  • Employee details and employment agreement summaries

Employment Focus

We need employee categories, key retention arrangements, and standard employment terms. This helps us understand your team structure and any constraints on changes.

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Agreement documentation required
Supplier Contracts
Material supplier and service provider agreements
Partnership Documents
Joint venture, collaboration, and affiliation agreements
Property Leases
All lease agreements for real and personal property
Employment Agreements
Employee schedules and key employment contract summaries

Section 8: Financial Arrangements & Obligations

Banking facilities, security arrangements, and financial commitments
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What financial arrangements do we need to understand?

Financial arrangements and obligations affect cash flow, operational flexibility, and partnership structuring options. We need to understand your banking relationships, security positions, and financial commitments.

This covers: Banking facilities, creditor arrangements, security documents, and ongoing tax matters.

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Financial information required
  • Banking and financing facilities (loans, overdrafts, guarantees, bonds)
  • Current creditors, accruals, provisions, and liability schedules
  • Outstanding security documents (mortgages, charges, guarantees)
  • Tax compliance status and any ongoing disputes
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Financial documentation needed
Banking Agreements
Facility agreements and current account statements
Liability Schedules
Creditor aging reports and liability analysis
Security Documents
Mortgages, charges, guarantees, and PPSR searches
Tax Documentation
Compliance summaries and dispute correspondence

Preparation Tip

Contact your bank and accountant to gather facility agreements and current liability schedules before starting this section.

Ready to Begin?

Estimated time: 45-90 minutes for most businesses, depending on your specific circumstances.

Start Part 2 - Operations Assessment

Remember: You can save progress and return later if needed.
Contact Richard Hernan or Reagan Muller if you have any questions or need assistance.