Operational Due Diligence Consulting
Understand how the operation truly performs before the deal is signed.
200+
Operational due diligence engagements delivered
$1.2B
In enterprise value assessed across operational diligence engagements
18-day
Typical turnaround for an operational diligence read inside a live deal process
85%
Targets assessed on-site, with capacity, asset condition, and supply chain verified firsthand
SEE INSIDE THE OPERATION
The Operational Reality Behind the Numbers
An acquisition is priced on an EBITDA number, and that number rests on an operation a deal team cannot see inside from a data room alone. Capacity can look sufficient on a spreadsheet while one aging line sets the real ceiling. Deferred capex and a maintenance backlog can wait quietly until they land on the next owner’s budget. Margins can read as stable while they depend on a single supplier or a tariff-exposed input. Operational due diligence closes that information gap before the deal is signed and turns operating facts into financial and strategic implications.
VDS reads a target through a strategic and operational lens that goes beyond a checklist, the same operator’s view behind our work for the private equity firms and corporate acquirers we serve. The Diagnostic® and the Value Driven Approach® turn a plant floor, an asset base, and a supply chain into a data-driven equity case: where performance really stands, what capital the plan will require, and which levers lift value after close. Every finding ties directly to valuation, EBITDA, and the first hundred days.
WHY CHOOSE VDS
Different Kind of Operational Diligence Partner
Most firms model the operation from the outside and hand over a report. VDS operators embed with management and read capacity, asset condition, and supply chain firsthand, and, powered by the VDS Business System® and 360° Client Alignment®, return to help capture the value they find after close.
Operators Who Ran the Floor
Industry veterans with 15 to 30 years in industrial operations read capacity, asset condition, throughput, and supply chain firsthand, so risks and upside surface early enough to price into the deal.
Findings Priced for Conviction
The Diagnostic® and Value Driven Approach® pinpoint and quantify every performance and capital gap, so investors move with evidence behind the valuation.
Built to Execute After Close
Through 360° Client Alignment, the operators who assessed a target can deploy into it after close, from analyst to COO, backed by the VDS partner ecosystem where needed.
THE OPERATIONAL READ
Where We Look for Risk and Upside
VDS operational read concentrates on the handful of factors that move a deal most, examined with data first and verified on the floor.
Capacity and Bottlenecks
Usable capacity against nameplate, the true constraint that caps output, and the headroom the growth plan needs. We identify the bottleneck that sets the real ceiling and what it would take to lift it.
Asset Condition and Capex
Equipment condition, maintenance backlog, and deferred capex, so the real capital requirement surfaces during diligence, before it lands on the new owner's budget after close.
Manufacturing and Supply-Chain Maturity
Process capability and operating discipline benchmarked against comparable businesses, locating the strengths to build on and the gaps that will slow the thesis.
Footprint and Network
Multi-site footprint, utilization, and the potential to consolidate or relocate for lower overhead and labor cost. Where this becomes a value lever, it connects to dedicated Footprint Optimization work after close.
Margin Drivers and Uplift
What actually drives margin today, how sustainable it is, and the specific levers available to improve it, each one sized so the deal team can price it into the model.
Supply-Chain Exposure
Supplier concentration, lead-time risk, and country-of-origin and tariff exposure, with mitigation paths that link to strategic sourcing when the issue is material.
THE DILIGENCE PROCESS
A Fast, Deep Read on a Deal Clock
process is built to move quickly, dig deep, and flex to the sponsor’s key questions, running on the Value Driven Approach® and the Diagnostic® underneath.
Align on the Thesis
The engagement opens by concentrating scope on what is material to this deal and defining the diligence questions tied to the investment thesis. A few operational factors typically drive most of the risk and most of the upside, so effort goes there first.
Review the Data Room and Assess On-Site
Production and throughput data, capex and maintenance records, supplier and inventory data, and quality and on-time-delivery metrics are reviewed, then verified firsthand through site and supplier visits. What the numbers imply gets confirmed on the floor.
Quantify the Findings
Each risk and each upside lever is sized and benchmarked against peers, and every finding ties to EBITDA and enterprise value. The read separates what belongs in the valuation now from what the buyer can capture after close.
Deliver the Report and 100-Day Roadmap
The output is a prioritized, ownable plan the deal team carries from signing into the first hundred days, with clear ownership and ROI milestones on every item.
THE DELIVERABLE
Clarity to Act on the Deal
VDS operational read is built to be used, by an investment committee deciding whether to proceed and by a deal team planning the first hundred days. The engagement leaves acquirers with a clear, defensible picture and a plan they own completely.
Evidence-Based View
Clear, objective read of how the target actually performs, grounded in data and on-floor observation, so decisions rest on what the operation really does.
Quantified Value Potential
Improvement opportunities sized and tied to EBITDA and enterprise value, so the upside is specific enough to fold into the model and the thesis.
Risks Surfaced Early
Operational risks found and quantified before close, so they shape valuation and deal structure while there is still room to act on them.
A Peer Benchmark
Performance measured against comparable operations, so strengths and gaps are clear and the plan targets the right ground.
Ownable 100-Day Plan
Prioritized roadmap the deal team keeps and runs, sequenced to protect value and capture it fastest from the day the deal closes.
FAQs – Due Diligence Consulting
Operational due diligence is a fact-based read of how a target actually runs and whether its operation can support the business plan and the projected EBITDA. VDS evaluates capacity and bottlenecks, asset condition and deferred capex, manufacturing and supply-chain maturity against peers, multi-site footprint, margin drivers, and supply-chain exposure including supplier concentration and tariff risk, then ties each finding to the investment thesis and to enterprise value.
Financial diligence concentrates on the historical and projected numbers. Operational diligence investigates the operation that produces those numbers, so the two are complementary. VDS positions the operational read to feed the financial equity case, confirming whether the margins, capacity, and capex assumptions behind a model hold up on the plant floor, and it integrates with quality-of-earnings work so the deal team gets one connected view.
Yes, and that is a core difference. The operators who assess a target can deploy into it after close through 360° Client Alignment®, turning the diligence roadmap into executed work. Post-Merger Integration and the VDS Business System® then hold the gains through the next owner's diligence.
The read is built to run within the tight timelines a competitive deal process allows. Focused scoping concentrates effort on the handful of operational factors that move value most, which reaches a credible, prioritized read quickly while keeping full rigor on the risks that matter.
Yes. VDS is built for the full deal cycle, from a fast operational read that informs the thesis, through execution during ownership, to a stronger operational story ahead of exit. The read runs alongside financial, technology, food safety, and, where relevant, ESG diligence, and feeds straight into integration planning. See our Private Equity practice for how we support firms across the portfolio.
PROVEN IN DILIGENCE
Operator-Led Diligence, Grounded in Evidence
VDS supports private equity firms and corporate acquirers across industrial manufacturing, aerospace, and food and beverage, including operational diligence on a private-equity investment in an aftermarket avionics business, an engagement for a PE-owned aerospace electronics manufacturer, and multi-month work inside global food operations.
That operating depth is what acquirers rely on when an operational read has to be both fast and defensible on tight diligence timelines. See how this expertise applies across our Private Equity practice.
LET'S CONNECT
Ready to Underwrite With Confidence?
Operator-led operational diligence, delivered at deal speed.
Whether you are pricing a target, planning the first hundred days, or preparing a business for sale, VDS gives you an operational read you can defend and a plan you can execute. Let’s talk about your deal and where a clearer view of the operation can move the outcome.