questions on operational due diligence

What Investors Should Ask About Operational Due Diligence in 2025

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Over the last five years, companies worldwide have endured a series of global disruptions. It all started with the pandemic, and then global inflation due to war disrupted the momentum. The recent introduction of tariffs between major trading blocks continues to complicate the international business environment. These challenges have significantly reshaped supply chains, capital expenditure strategies, and operational resilience of global firms.

In 2025, operational due diligence is no longer a tool to identify risks. It’s a strategic requirement for companies. Investors and acquirers have been working with established advisory consultants for due diligence services. Professional consultation helps businesses determine how they should respond to adversaries.

In this edition, we have discussed the critical questions based on the operational due diligence best practices guide that should reshape any due diligence effort this year.

Question 1: How did the management handle the crises of the past five years?

While addressing this question, businesses must evaluate the following:

  • The effectiveness of crisis response strategies
  • The long-term impact on EBITDA margins and operating structure
  • Adjustments to the original investment hypothesis

Why it matters?

The average holding period for portfolio companies has increased to 5.7 years. Often, this overlaps entirely with global crises. Businesses must understand the adaptability and leadership capacity of management teams to predict performance in the future.

Question 2: What operational risks exist in the current value chain?

Companies assessing this question must address the following:

  • Concentration of suppliers and geographic exposure
  • Tariff risks associated with Class A suppliers
  • Effectiveness of purchasing and supplier management

Why it matters?

With increasing tariffs and cost volatility, depending on a limited number of suppliers can be a major vulnerability. Global firms must assess the maturity and resilience of the procurement function to understand the ability of the company to manage cost and supply pressures.

Question 3: Is the organizational structure of the company scalable for future growth?

Businesses, while understanding this aspect, must evaluate:

  • Readiness of their workforce and the capabilities for upskilling
  • Restart timelines for idle production lines
  • The flexibility of their capacity across sites and geographies

Why it matters?

The post-crisis recovery is prompting aggressive growth targets. For companies planning expansion, a scalable production and logistics setup is non-negotiable. Site visits, interviews with operations leadership, and lead-time analysis offer crucial insight here.

Question 4: How accurate are CapEx assumptions in the business plan?

Address these issues while evaluating this question:

  • Deferred investments and potential backlogs
  • Realistic pricing of equipment in current markets
  • Whether you have considered technological upgrades

Why it matters?

Historical cost assumptions can significantly underestimate contemporary capital requirements. A thorough review ensures the business plan reflects the pricing and technological requirements of the current market. Global companies cannot afford to thrive on outdated or overly conservative benchmarks.

Question 5: What value-creation opportunities exist beyond current performance?

This is a crucial question for most organizations. Evaluate the following aspects to strengthen your strategy.

  • Initiatives for cost reduction in the short term
  • Potential for structural transformation like automation or outsourcing
  • How practical proposed timelines project savings can be

Why it matters?

Many organizations take aggressive cost-saving measures before a sale. However, it’s critical to assess whether or not these are achievable and grounded in current operating conditions.

The Strategic Role of Due Diligence Services

With the transaction environment growing complex, comprehensive due diligence services offer a detailed oversight on:
  • Risk exposure
  • Operational readiness
  • Potential for value creation
  • Scalability

For investors, the important question is not what it is, but what could be under the right ownership and strategic direction.

Global companies partner with established consultants like the IMC Group for due diligence services, where professionals specialize in delivering this level of insight. Experienced advisors bring deep sectoral knowledge to the table, along with a stringent due diligence framework backed by data to help clients make confident decisions.

Businesses preparing for a transaction, exploring investment opportunities, or restructuring their operational footprints benefit from detailed due diligence services, gaining the clarity and foresight they need. With tailored due diligence solutions, companies worldwide can plan their next strategic move.

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