Explanation: Operational Due Diligence (ODD)

The acronym "ODD" stands for "Operational Due Diligence" in the context of company takeovers, mergers, investments, or other business transactions. It refers to the process of carefully examining the operational systems and workflows of a company or organization.

The ODD aims in particular to identify possible risks, opportunities, weaknesses and strengths of the company or organization. For example, production processes, supply chain management, quality assurance and IT systems are evaluated. The aim is to provide potential buyers or investors with a comprehensive understanding of the operational circumstances of the target company, which they can use to make well-founded decisions regarding the transaction.

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