Operation Due Diligence (ODD) refers to a comprehensive and detailed research upon the internal operation flow and infrastructure of a target company in an investment/acquisition which helps the investor to assess the operational model and work efficiency. Combing the outcome of the Operation Due Diligence Report with the strength of the investor/acquirer, the investor would be able to objectively locate the potential synergy for the transaction and the value of the target company. In addition, the Operation Due Diligence sets the primary mentalities for Post-Merger-Integration solutions.

Core contents of an Operation Due Diligence Report

1.Operation Flow Analysis (R&D, Procurement, Production, Logistics, Distribution Channels, Sales, After-sales)

2.Infrastructure Analysis (IT System, Corporate Culture, Accounting System, Collaboration Mechanism)

3.Valuation (Synergy Analysis, Valuation of the Business, Integration Solutions)