{"ok":true,"canonical_url":"https://dealroom.so/glossary/operational-due-diligence","api_url":"https://dealroom.so/api/public/glossary/operational-due-diligence","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"operational-due-diligence","term":"Operational due diligence","group":"Reading the business","definition":"A deep dive into the business's day-to-day processes, systems, and personnel to assess efficiency, risks, and growth opportunities. It goes beyond financial statements.","what_it_means":"This is where you verify if the business can actually deliver what its financials promise. You'll examine everything from inventory management to customer service protocols and key employee roles. It's crucial for understanding how the business runs and what changes you might need to implement post-acquisition.","url":"https://dealroom.so/glossary/operational-due-diligence","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"operations-management","term":"Operations management","url":"https://dealroom.so/glossary/operations-management"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"How does declining revenue during due diligence impact loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-declining-revenue-during-due-diligence-impact-loan-approval"},{"question":"What environmental due diligence is mandatory for real estate collateral?","url":"https://dealroom.so/sba-7a/questions/what-environmental-due-diligence-is-mandatory-for-real-estate-collateral"},{"question":"What if the acquired business has environmental contamination issues discovered during due diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-environmental-contamination-issues-discovered-during-due"},{"question":"What if the seller is unwilling to provide sufficient financial documentation during due diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-is-unwilling-to-provide-sufficient-financial-documentation-during-due-d"},{"question":"If key employees resign during due diligence, could this kill the SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/if-key-employees-resign-during-due-diligence-could-this-kill-the-sba-loan-approval"},{"question":"What due diligence is required for a franchise not on the SBA Franchise Directory?","url":"https://dealroom.so/sba-7a/questions/what-due-diligence-is-required-for-a-franchise-not-on-the-sba-franchise-directory"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Operational due diligence","url":"https://dealroom.so/glossary/operational-due-diligence","source_type":"DealRoom Data"}}