Reply To: Timeframe for Due Diligence


Marcelo Lopes Abud

Hi Tobias,

Here are my thoughts about it:

In Brazil, middle market companies usually don`t have a good quality internal controls and accounting, also they sometimes have a very delayed period reporting, which in some cases are around 3-4 months delay.
Middle market companies dont have a big staff to run those deals (at all), and also dont a skilled team to work on it also. All those problems togheter really difficult success of the deal, because uncertainty is to big and sometimes running into those business is like running into black boxes.
Based on what i saw around here (brazilian middle market), deals and due diligence lasts an average of 1 year or more.

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