This video was taken at a meeting of the National Association of Entrepreneurs and is a frank discussion of the need for both investors and business to perform an operations due diligence, which is a risk assessment of a businesses operations infrastructure.
Performing a thorough due diligence requires an exploration of the financial, legal, and operations facets of a business. Unlike legal and financial due diligence, which are founded on the principals of law and accounting, there are no similar principals to guide an operations due diligence and most investors would agree this is where they make their greatest mistakes. Operations due diligence assesses the latent operations risks that could impact the continuing operations of a business making it less sustainable.
Many businesses fail to understand the importance of performing proactive risk self assessments. Instead they become reactive and you hear them make statements like "Oh, I should have seen that coming".
My new book, Operations Due Diligence - An M&A Guide for Investors and Business will be released by McGraw Hill on 11/4/11.
Diligent Inc specializes in helping investors and businesses with their operations management needs.
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