Replying to [Robert]: Replying to [Robert]:
I could not agree more... Operations due diligence enables the discovery of most operational issues and risks material to a transaction. In this context, operations must include all business and work processes throughout every functional area of the organization. Limiting the assessment to only those few functions of a company that support its main activity may omit important factors that could impact merger integration and the deals success. Key questions addressed during this phase include:
* What do the management models of both the acquiring and selling companies look like?1
* What opportunities exist for operational improvements?
* What operational synergies can be realized?
* Are the corporate cultures compatible?
But dont forget to plan for supplier transition issues during the implementation planning phase just like a
jeep tow bar. Handled poorly, supplier issues during implementation can lead to added costs, lost product-to-market time and bad public relations.