How long does DD actually take?
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I’m interested to know what the standard DD timeframes are for sectors and size of M&A transaction. If anyone can give me a rough guide I would be keen to understand better. Thanks!
Certainly would depend upon the size of the transaction, but given most are in the 200-800M range typically I’d expect a good 30 days for diligence. If there are additional circumstances such as expanded number of geographies, multiple countries or significant product differentiations then it could go upwards of 60-90 days. A good team that has done this work prior is an important resource to have close.
I think the process depends on the selling entity and their ability to provide the requested materials as well as the time for your own team to analyze, ask questions, and discuss any red flags. Also, the business that you’re in also impacts this.. so for hard to say. I would agree 30 days is average from the time an LOI is issued to being 90% + complete on diligence.
It can take a minimum of 30 days and up to 90 days and beyond, depending on the size and complexity of the deal.
I agree with the previous feedback provided. It typically depends on the size and complexity of the deal, as well as, the speed at which the seller’s team can turn requests around for additional information (outside Virtual Data Room) needed to move the DD phase along to completion.
I agree with all previous inputs, I’d say that depends on both the complexity of the transaction and the timely availability of requested information inside and outside the VDR.
I think DD procedure doesnt have any pre-defined time frame (in avrage one can estimate but not with best fit). Its mostly dependent to the complexity of business nature of target company. I was involved in a 35 million Euro deal which took longer than expectation because of IPs and HR contracts of target company complexity.
I think the time it takes also largely depends on your industry expertise. For example, as a strategic buyer you may skip a commercial DD while as a financial buyer, a commercial DD is an absolute must. Depending on your DD budget and the urgency to complete the DD you may conduct the different types of DDs in parallel to save time.
Based on type of M&A, how big, small, complex. Qualitative and Quantitative data. approximate 6-12 week.
It varies from acquisition to acquisition, depending on the deal and company size, and can be anywhere between 1 to 12 months.
Depends on the size and age of the company and the acquirer’s risk tolerance.
It can take anywhere from 3 to 2 years or even more.
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