Operational due diligence for agri-tech producer acquisition

Industry	Agriculture, technology
Services provided	Financial and operational review services, operational due diligence

Key learnings

Value creation strategies: Operational due diligence is essential not only to risk mitigation but also for identifying growth levers
Early intervention: Addressing structural gaps before transaction close ensures a stronger foundation for post-acquisition success.

BDO was engaged by a private equity fund preparing to acquire a flower producer and wholesaler. The fund sought to verify the business model and assess the company’s growth potential through a comprehensive operational due diligence process.

BDO provided financial and operational review services, including:

Operational due diligence
Historical financial performance analysis
Business plan and forecast review
Comparable company benchmarking
High-level operational assessment
Value creation strategy identification.

Strategy and restructuring path

BDO delivered a detailed report outlining:

Key findings from financial and operational analysis
Strategic opportunities for post-acquisition value creation
Recommendations for improving financial and operational reporting
The report identified several initiatives the private equity sponsor could implement to enhance performance and scalability post-transaction.

Outcome

BDO’s review uncovered a critical gap in the finance and accounting function - the absence of a Chief Financial Officer (CFO). This raised concerns about the business’s ability to meet private equity reporting standards. To address this, BDO:

Collaborated with both the fund and the business to develop robust key performance indicator (KPI) reporting frameworks
Enabled a smooth transition post-acquisition
Initiated discussions around management advisory services, including interim CFO support.