Operational Due Diligence

The objectives of an ODD are to:
Assess the sustainability of the target’s operations into the future, without additional investment on top of management’s business plan
Identify actions and investments needed, not seen or considered by target management, to accelerate value creation moving forward Advise the deal team on the strategic fit of the contemplated transaction As process, ODD should secure buy-in from all stakeholders for the planned change
Your operational due diligence framework should comprise the following components with a view to assessing future value and synergy realization, and mitigating risks:
1. People and organization
2. Technology and systems
3. Politics and regulations
4. Efficiency and quality
5. Data and documentation
6. Cost and capital