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Operational Due Diligence: What it actually means?
Operational due diligence assesses whether a target’s operations — people, processes, systems, supply chain, facilities and governance — can support the business plan and the buyer’s integration plans. Consultants identify bottlenecks, under-investment, key-person risk, compliance issues and synergy opportunities, and estimate the capex and change effort needed after closing. This is crucial for both PE and corporate buyers because it links “what the business earns today” to “what it will take to run it tomorrow”. Strong operational DD improves valuation accuracy and integration success.
