Operations Diligence
Chapter IV of the seven-chapter CDD spine.
Chapter IV of the CDD spine: Operations Diligence. The chapter answers the IC’s primary question for this leg of diligence and cites the primary UK sources it draws on. Source: ICAEW Corporate Finance Faculty; BVCA Industry Activity.
Chapter IV stress-tests capacity, unit economics and the operations bridge to the financial model. Where the workstream warrants its own report, a standalone ODD adviser is commissioned alongside CDD.
§ 1.1Capacity
Industrials: plant utilisation, throughput, downtime. Services: utilisation rate, fee earner pyramid.
§ 1.2Unit economics
CAC, payback, contribution margin per cohort. Cross-checked to QofE workbook (chapter V).
§ 1.3Ops bridge
The walk from operations output to revenue model; flag any breakage to chapter V owner immediately.