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Operational Due Diligence

FREQUENTLY ASKED QUESTIONS

What is Operational Due Diligence?

Operational Due Diligence assesses business processes, systems, workforce, and scalability to identify inefficiencies, risks, and integration challenges, ensuring seamless operations post-acquisition.

Why is operational due diligence as important as legal and financial due diligence?

Operational due diligence is crucial because it evaluates the day-to-day functioning of the business, ensuring that operations are efficient, scalable, and aligned with the company’s strategic goals. It complements legal and financial due diligence by providing a comprehensive view of potential risks and opportunities, ensuring a well-rounded assessment of the business.

Can operational due diligence uncover cultural mismatches that might affect the acquisition?

Absolutely. Operational due diligence can reveal cultural mismatches between the acquiring and target companies, such as differences in management styles, employee engagement levels, or corporate values. Addressing these mismatches is crucial for successful integration and long-term synergy.

What often-overlooked operational issues might be discovered during due diligence?

Operational due diligence can reveal overlooked issues such as inefficient workflows, inadequate maintenance practices, or underperforming supply chains. Identifying these problems early ensures that they can be addressed before they impact the overall success of the acquisition.

How important is the documentation of processes during operational due diligence?

Thoroughly documenting processes during operational due diligence is critical for understanding how the business operates on a daily basis. This documentation helps identify areas for improvement, ensures consistency, and provides a clear roadmap for integrating and optimizing operations post-acquisition.

What Does It Cover?

Operational Due Diligence covers team structure, workflows, technology, and scalability, identifying inefficiencies and risks to ensure smooth integration and sustained growth.

Team & Talent Management

Evaluation of organizational structure, leadership effectiveness, and workforce capabilities to ensure alignment with business goals.

Systems & Processes

Assessment of workflows, standard operating procedures, and operational efficiencies to identify gaps and areas for optimization.

Technology Stack

Review of IT infrastructure, software systems, and cybersecurity measures to ensure operational resilience and scalability.

Scalability & Growth Planning

Analysis of business expansion potential, resource allocation, and operational adaptability to support long-term growth.

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Due diligence is critical in business acquisitions to uncover risks before closing a deal. Many buyers fall into confirmation bias, missing key red flags.

At Buy and Build Advisors, we handle the financial, legal, and operational due diligence—so you can invest with confidence.
Due diligence is critical in business acquisitions to uncover risks before closing a deal. Many buyers fall into confirmation bias, missing key red flags.

At Buy and Build Advisors, we handle the financial, legal, and operational due diligence—so you can invest with confidence.