Operational Due Diligence

Operational Due DiligenceIf you are considering selling your business or a piece of your business …
Or if you are considering purchasing a business …
You’ll want a critical review of the business operations.

What is Operational Due Diligence ?

Operational Due Diligence is a review of the main operations of a target company and attempts to confirm (or not) that the business plan that has been provided is achievable with the existing operational facilities plus the capital expenditure that is outlined in the business plan.  Additionally the diligence will consider whether there is the potential for additional value from the target company by improving its operational function.  There is also consideration to operational risks that the potential buyer should consider.  If there are significant or material risk the buyer may want to not purchase the company of as a minimum renegotiating the price.

An Operational Due Diligence review is often performed by a third party. The diligence is usually requested by the bank or other party that is backing the deal and is interested in the downside risks.

Focus areas include but are not limited to:

  • Sales
  • Executive Sales
  • Executive Sales Management
  • Corporate Marketing
  • Channels Marketing
  • Internet Marketing
  • Professional Services (Start Up through International Management)
  • Break Fix Services
  • Information Technology
  •  R&D
  • Supply Chain
  • Manufacturing
  • Intellectual Property and Capital
  • Human Resources
  • Market Analysis