Draft:Organisational due diligence

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Organisational Due diligence is a process that can be used pre-merger or post-merger integration. Its a process in which organisational structure, operating model, leadership and culture of the organisations in the process of M&A or starting an organisational transformation can be assessed.

Saket Bivalkar suggests that " While financial due diligence often takes the spotlight, we believe a comprehensive organisational due diligence is equally crucial" since more than 70% of post merger integrations fail due to the topics mentioned above[1]

  1. What is Organisational Due Diligence (ODD)?
    • Answer: Organisational Due Diligence is a meticulous examination and evaluation process undertaken by prospective investors, acquirers, or leaders within an organization. It provides profound insights into the intricacies of the target entity beyond financial metrics. ODD delves into the organizational fabric, including culture, people, and strategic imperatives. It transcends boundaries to uncover an organization’s mission, vision, values, leadership dynamics, workforce pulse, and alignment of culture with strategic goals.
  2. Why is Organisational Due Diligence important?
    • Answer: In an era of mergers, acquisitions, and strategic partnerships, ODD is paramount. Organizations are living ecosystems shaped by human dynamics, leadership philosophies, and cultural nuances. ODD recognizes this complexity and ensures informed decision-making by mitigating risks and capitalizing on opportunities.
  3. What areas does Organisational Due Diligence cover?
    • Answer: ODD extends beyond financial aspects. It scrutinizes leadership dynamics, workforce pulse, and cultural alignment with strategic objectives. It explores an organization’s essence, uncovering its mission, vision, and values. By understanding these elements, stakeholders gain a profound understanding of the entity under consideration.
  4. How does Organisational Due Diligence mitigate risks?
    • Answer: Organizations inherently carry risks embedded in culture, operational inefficiencies, and legal frameworks. ODD helps identify and address these risks. By assessing an organization holistically, it creates a strong foundation for successful business decisions.

References[edit]

https://www.linkedin.com/pulse/role-organizational-due-diligence-private-equity-saket-bivalkar/?trackingId=rcQC9Y%2B9QW6fEDuSydibdQ%3D%3D

https://versatile.consulting/organisational-due-diligence-chapter-1/

  1. ^ "The Role of Organizational Due Diligence in Private Equity transactions". www.linkedin.com. Retrieved 2024-03-20.