The term usually refers to an audit, or an investigation, conducted prior to an acquisition or a joint venture agreement.
Usually this is a laborious and expensive exercise commercially and financially driven.
If there are technical assets involved (factory, distribution centre) some questions should be asked: is there the capacity to cover my plans? Is there the quality level required for my product? Is there any further investment necessary?
This would save us from some surprises down the path and speed up the implementation of the commercial plan following the transaction.