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:
“Science and art are only too often a superior kind of dope, possessing this advantage over booze and morphia: that they can be indulged in with a good conscience and with the conviction that, in the process of indulging, one is leading the “higher life.””
—Aldous Huxley (1894–1963)
“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)
“If thinking is like perceiving, it must be either a process in which the soul is acted upon by what is capable of being thought, or a process different from but analogous to that. The thinking part of the soul must therefore be, while impassable, capable of receiving the form of an object; that is, must be potentially identical in character with its object without being the object. Mind must be related to what is thinkable, as sense is to what is sensible.”
—Aristotle (384–322 B.C.)