Process
The ODD review looks at the main operations of the 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 ODD review will consider whether there is the potential for additional value to be wrought out of the target company by improving its operational function and also whether there are serious operational risks about which the potential buyer should be concerned (thereby allowing the buyer to consider aborting the deal or renegotiating the price).
Read more about this topic: Operational Due Diligence
Famous quotes containing the word process:
“Consumer wants can have bizarre, frivolous, or even immoral origins, and an admirable case can still be made for a society that seeks to satisfy them. But the case cannot stand if it is the process of satisfying wants that creates the wants.”
—John Kenneth Galbraith (b. 1908)
“I believe that history might be, and ought to be, taught in a new fashion so as to make the meaning of it as a process of evolution intelligible to the young.”
—Thomas Henry Huxley (1825–95)
“Any balance we achieve between adult and parental identities, between children’s and our own needs, works only for a time—because, as one father says, “It’s a new ball game just about every week.” So we are always in the process of learning to be parents.”
—Joan Sheingold Ditzion, Dennie, and Palmer Wolf. Ourselves and Our Children, by Boston Women’s Health Book Collective, ch. 2 (1978)