Operational Due Diligence Ft. Tim Van Mieghem

When business owners think about due diligence, financial statements, tax returns, contracts, and legal documents usually come to mind. But buyers are also trying to answer a more fundamental question: How well does this business actually operate? In this episode, Pat Ennis and Walter Deyhle welcome back Tim Van Mieghem, Founding Partner of The ProAction Group, for a discussion about operational due diligence and why it matters long before an owner decides to sell. They explore the operational risks and opportunities buyers look for, including owner dependency, undocumented processes, weak management, customer concentration, poor KPIs, and lack of accountability. For owners, the important takeaway is that operational due diligence doesn't have to begin when a buyer arrives. Looking at your company today through the eyes of a future buyer can reveal weaknesses, reduce risk, improve performance, and uncover opportunities to increase business value well before a transaction. In this Episode we discuss: What operational due diligence is and how it differs from financial and legal due diligenceWhat buyers are really trying to learn about a company's operations What gives a buyer confidence that the business can continue performing after the owner exitsCommon operational issues that can reduce value or create buyer concernThe impact of owner dependency and undocumented processesWhy management strength, KPIs, and accountability matterOperational improvements owners should make two or three years before going to marketHow technology, automation, data, and AI are changing operational due diligenceWhy owners should prepare for operational due diligence before a Letter of Intent is ever signed Guest:  Tim Van Mieghem, Founding Partner, The ProAction Group Tim Van Mieghem is a Founding Partner of The ProAction Group, an operational consulting firm that has served middle-market companies since 1995 by helping them identify, quantify, and uncover latent value. ProAction primarily serves private equity firms and their portfolio companies. Tim's expertise includes manufacturing, logistics, and inventory management, and is showcased in his book Implementing Supply Partnerships and his forthcoming book, Shocking Profit. He also hosts the Shocking Profit podcast. Connect with Tim:  https://www.linkedin.com/in/tim-van-mieghem-5ba91b/     https://www.proactiongroup.com/ ───────────────────────────────────────── Ready to assess your own ExitReadiness®? Take the free ExitReadiness® DIY™ Assessment at exitreadiness.com. ───────────────────────────────────────── Prefer to begin your planning process on your own?  Explore ExitReadiness® DIY™ at exitreadiness.com. The platform provides proven frameworks, practical tools, assessments, and educational resources designed to help business owners make better decisions, build more valuable and transferable businesses, and create more options for the future. When judgment and experience matter most, credentialed exit planning professionals are available to help. Conversations that move you closer to a regret-proof exit. Subscribe To The Channel By Clicking HERE!Learn more about working with Pat and Walter at ennislp.com Connect with Pat: linkedin.com/in/pat-ennis-25b4a111/Connect with Walter: linkedin.com/in/walter-deyhle-cpa-abv-cff-maff-cexp-cepa-57386614/#PatEnnis #WalterDeyhle #ExitReadinessDISCLAIMER: The information in this presentation is provided as education only. Neither the presenter nor ENNIS Legacy Partners is engaged to render legal, accounting, or other professional services. Consult a qualified professional for advice specific to your situation. ENNIS Legacy Partners assumes no legal liability for any loss related to information contained in this presentation.