Procurement due diligence in Australia and New Zealand: Check the savings before they go in the deal model.
Procurement due diligence is a review of a target’s spend, contracts and supplier position before an acquisition, with the savings sized for the deal model. TPP does it for private equity and corporate buyers in Australia and New Zealand, then stays to deliver the synergies until they show in the P&L.
Where the savings are found, and where they’re banked.
- Before you signDiligence
Spend, contracts and suppliers reviewed. Savings sized for the deal model.
- SigningNotified
Above the thresholds, the deal goes to the ACCC.
- The waitNo completion yet
The procurement part of the value creation plan gets finished, inside the limits your lawyers set.
- CompletionDay one
The new owner starts on a plan that’s already in order.
- First 100 daysOne buyer
A spend cube for the combined business. Supplier bases and contracts combined.
- After thatIn the P&L
12-week Cost-out Sprints, tracked until finance signs off the savings.
Four things we check, and what you get from each.
Financial diligence tells you what the target spends. Procurement diligence tells you how much of that can move, and what it takes to move it.
| What we check | What you get | |
|---|---|---|
| Spend | A spend cube built from the target’s accounts payable data: who it buys from, how much, in which categories. | Addressable spend, sized by category. |
| Contracts | The largest supplier agreements: term, price mechanisms, and what happens on a change of control. | The contracts that move with the deal, and what each one costs or lets you renegotiate. |
| Suppliers | Concentration, single-source dependence and how hard each supplier is to replace. | The supplier risks to price in, and where you’ll have room to negotiate after close. |
| Savings | Each lever tested against the data: price, specification, volume and consolidation. | A savings range for the deal model, with what has to be true for each number. |
The same team delivers what it sized.
Synergies get promised in the synergy case, then never delivered after close. We size them, and then we deliver them.
There’s now a fixed wait between signing and completion.
Since 1 January 2026, acquisitions above set thresholds must be notified to the ACCC, and they can’t complete until they are cleared. Before that date, notification was voluntary.
For procurement that changes two things. There is time between signing and completion to finish the procurement part of the value creation plan, so day one starts with the work already sequenced. And there are limits on what buyer and target can share while they wait, including supplier pricing. Your lawyers set those limits. We work inside them.
General information, not legal advice. The ACCC publishes the thresholds and the process.
Before you bring us in.
Sponsor based overseas? See procurement for portfolio companies in Australia.
What is procurement due diligence?
A review of a target company’s spend, contracts and supplier position before an acquisition, with the procurement savings sized for the deal model. It tells the buyer how much of the cost base can move, how fast, and what it depends on.
What do you need from the data room?
A spend extract from accounts payable and the largest supplier contracts. From the spend extract we build a spend cube, which shows who the target buys from, how much and in which categories.
Do you deliver the synergies as well?
Yes. After close we combine supplier bases and contracts so the business buys as one, run the cost-out, and track the synergies until they show in the P&L and finance has signed them off.
Do you work for corporate buyers as well as private equity?
Yes. TPP works for private equity firms and for corporate development teams, on acquisitions, integrations and separations.
What changed with Australia’s merger rules in 2026?
Since 1 January 2026, acquisitions above set thresholds must be notified to the ACCC and can’t complete until they are cleared. That puts a fixed wait between signing and completion, with limits on what buyer and target can share in that time. Your lawyers set those limits and we work inside them. This is general information, not legal advice.
How are fees structured?
A fixed fee, or pay for performance with part of the fee at risk. Each engagement has a stated outcome, a timeline and a price agreed in writing.
Which sectors do you work in?
15+ sectors. Deepest in PE-backed businesses, FMCG and food and beverage, personal and home care, packaging, manufacturing, QSR, IVF and life sciences, healthcare and dental, and retail. Not construction, mining, or oil and gas.
Thirty minutes on the deal in front of you.
A free call with Ashokk. In confidence. Nothing you share leaves the call.