The Management Audit process utilizes a robust, proven methodology to evaluate the current efficiency and effectiveness of a strategy and business processes and identify gaps or leakages within operations that would have occurred in times of rapid growth.
The process involves a comprehensive analysis of the organization, analysis of all policies, corporate governance issues, financial budgets, financial and nonfinancial measures, internal controls, operational mechanisms, and utilization of resources in terms of human and financial capital.
This process could identify situations such as:
Unprofitable operations that drain a company’s resources
Organizational areas that are disconnected leading to a strain on operations.
Duplication of activities or activities that should not be undertaken.
Disharmony / disorder of performed activity.
Gaps in processes.
Identify and fulfil management information needs of your corporate hierarchy.
The financial and operational benefits of this stays with the company for years.
MERGERS AND ACQUISITIONS
Most Mergers and Acquisitions face challenges in melding into a cohesive unit two different companies. Two different Corporate Cultures, Personnel, Strategies, Processes, Systems, Operational Methods, Branding, Public communication. The costs of a M&A are usually much higher than budgeted, not only in terms of money, interpersonal conflicts, time, business disruption, loss of key employees, key customers for example, but more importantly, the management and merger of Corporate Cultures which are the main cause of most success and failures.
Management Audit can provide tremendous support for companies undertaking a Merger or an Acquisitions where the investigation method helps to uncover any surprises you could face as well as assess if the companies are a Cultural fit and if not, then identify steps that to overcome the mismatch in culture and other business functions. This could lead to a successful transaction with lower hidden costs post the M&A.