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:
“Opinions are formed in a process of open discussion and public debate, and where no opportunity for the forming of opinions exists, there may be moods—moods of the masses and moods of individuals, the latter no less fickle and unreliable than the former—but no opinion.”
—Hannah Arendt (1906–1975)
“There was only one catch and that was Catch-22, which specified that a concern for one’s own safety in the face of dangers that were real and immediate was the process of a rational mind.... Orr would be crazy to fly more missions and sane if he didn’t, but if he was sane he had to fly them. If he flew them he was crazy and didn’t have to; but if he didn’t want to he was sane and had to.”
—Joseph Heller (b. 1923)
“Yet I doubt not through the ages one increasing purpose runs,
And the thoughts of men are widened with the process of the suns.”
—Alfred Tennyson (1809–1892)