Operational Due Diligence

We leverage regional and global experience with a tacit knowledge of the restaurant industry to ensure a big investment is one that will yield powerful returns. Our Operational Due Diligence services involve a comprehensive review of the operational capabilities of a company, structured by functional area and departments, all through a holistic lens of the business. Through ascertaining short-term and mid-range investment needs, we can ensure that the performance, costs and capacity of the businesses can meet its forecasts and targets.

Operations comprised of individual stores pose a particular set of challenges and rigorous due diligence is necessary to assess the seller’s projections of a business’ financials and to identify additional opportunities and risks that may impact the ultimate value assessment for the investor.

We can help by:

  • Analyzing individual store performance (to ensure that highly profitable or unprofitable stores aren’t skewing a company’s valuation)
  • Reviewing the target’s operational performance through the lens of culinary systems, food and labor cost analysis, potential guest experience improvements, and capacity and throughput analysis to determine productivity enhancements
  • Assessing everything from transaction-level granularity (including a trailing 36-month analysis), industry-specific KPIs and benchmarks to company culture and corporate governance
  • Identifying key areas where further efficiencies can be gleaned and cost reductions can be made
  • Recommending potential opportunities to institutionalize the business by investing in standardized procedures and industry best practices
  • Creating plans and developing prototypes for a new unit before expansion
  • Developing and unlocking value in new profit centers