Explain about the type of due diligence that uncovers the aspects of operational weakness, inadequacy of control mechanisms and also gives a better picture of the kind of cost to the buyer for the expansion.

Operational Due Diligence diagnoses of the organization's historical and current operational performance, cost structure, map of potential synergies. It aims at the assessment of the functional operations of the target company, connectivity between operations, technological up gradation in operational process, financial impact on operational efficiency etc. Operational due diligence involves verifying operational matters such as the various facilities, office layout, sitting capacity etc. Further in operational due diligence the detailed index of the fixed assets and its locations, age of the assets including all lease agreements relating to various equipment, schedule of sales and purchases of major capital equipment during previous years/ last three years, real estate deeds, mortgages, title policies and other permits also need to be verified in operation due diligence. Benefits of Operational Due Diligence: It also uncovers aspects on operational weakness, inadequacy of control mechanisms etc. It also gives a better picture of the kind of cost the buyer is going to incur in case they plan to go for expansion. It verifies the various facilities owned by the target company and whether all costs are captured in the financials or not.