WHAT IS AN M&A OPERATIONAL DUE DILIGENCE CONSULTANT?

Operational Due Diligence (ODD) is a type of Due Diligence used during Merger and Acquisition activities. Operational Due Diligence has a specific focus that provides insight into the operational performance of the potential buyer. The Purchaser will have a firm exercise due diligence to assess the Operational activities in reference to a strategic business plan. EHIIP Consulting works with Private Equity firms to provide m&a operational due diligence and forward-looking projections of the potential acquisition. The Operational Due Diligence provides an understanding of current operational activities and risks. The Diligence also provides a strategy for future operational capability and future growth. The potential of the investment will then be presented in the financial form in the strategic plan for the buyer.

Due diligence is a thorough examination or audit of a company that is usually performed prior to a merger or acquisition. The goal of M&A operational due diligence is to ensure that any decision made about the company in question is informed, maximizing your chances of adding value in an M&A transaction. Due diligence in a company acquisition typically includes a thorough understanding of a company’s obligations, such as debts, leases, distribution agreements, pending and potential lawsuits, long-term customer agreements, warranties, compensation agreements, employment contracts, and other similar business components.