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Independent Business Review of a Libyan Factory

PrivateCo*, considering the acquisition of a factory in Libya characterised for its informal operations and minimal accounting records, engaged Qabas to conduct an independent business review. The lack of formalised processes posed significant challenges in assessing the true operational state and potential for future growth and certification compliance.

Full Operational Analysis

To address these challenges, we conducted a thorough operational analysis, encompassing:

  • Product Purchasing Patterns: Analysed historical procurement data to understand sourcing practices, supplier reliability, and cost-efficiency. This involved tracking purchase orders, lead times, and inventory turnover rates to identify potential savings and improvements.
  • Sales Data Evaluation: Evaluated sales records to assess market penetration, revenue streams, and customer demographics. This included segmenting sales data by product line, region, and customer type to identify growth opportunities and market trends.
  • Operational Workflow Assessment: Investigated production processes, workforce management, and workflow efficiencies. This involved mapping out production stages, assessing machinery and equipment utilisation, and reviewing workforce allocation and productivity metrics.

Risk and Compliance Assessment

We also performed a risk and compliance assessment to ensure the factory’s operations could meet international standards:

  • Regulatory Compliance Review: Assessed the factory’s adherence to local regulations and international standards. This included reviewing environmental, health, and safety practices, as well as labour laws compliance.
  • Financial Due Diligence: Conducted a financial review to evaluate the accuracy and completeness of the factory’s financial statements. This involved examining expense reports, revenue recognition practices, and cash flow management.
  • Risk Identification and Mitigation: Identified potential operational, financial, and regulatory risks. Developed mitigation strategies to address these risks, ensuring the factory’s long-term viability and compliance with certification standards.

Strategic Recommendations and Implementation Plan

Based on the full analysis, we provided PrivateCo* with strategic recommendations and an actionable implementation plan:

  • Operational Improvements: Suggested enhancements in procurement practices, production efficiency, and workforce management. Recommended adopting lean manufacturing principles and advanced inventory management systems.
  • Market Expansion Strategies: Identified opportunities for market expansion and product diversification. Recommended strategies to increase market share, including targeted marketing campaigns and strategic partnerships.
  • Compliance and Certification Roadmap: Developed a roadmap for achieving compliance with international standards, including ISO certifications. Outlined steps for improving environmental, health, and safety practices, and ensuring regulatory compliance.

Key Findings and Outcomes

Our independent business review provided PrivateCo* with a clear understanding of the factory’s current operations and potential for improvement. Ultimately, it equipped our client with the necessary information to evaluate the viability of the acquisition and plan for future success.

*We take our clients’ confidentiality seriously; whilst names are changed, outcomes remain real.

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