Budget for Due Diligence

Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • #71542
    Joshua Tan Lien Hoe
    Participant

    How should we budget / make provision for due diligence exercises?

    #71784
    asmn
    Participant

    It is now very easy to send money, practical to any country. No matter what continent it is on and no matter what currency it is, there is still a stress that can help you send money to that country without big commissions with very fast sending and really with a reliable service, to find it, I would recommend you to go to This site https://www.profee.com/ definitely. This is where you will be able to find this option for you.

    • This reply was modified 1 month, 4 weeks ago by asmn.
    #72014
    RongFang LYE
    Participant

    A rule of thumb could be 1% to 5% of the expected transaction value of the project.

    #72370
    Kester Low
    Participant

    Better to spend on DD than to enter transactions that pose significant risks/have negative returns/complete mismatch in cultures. I would say to spend at least 6 months worth of salaries for full Due Diligence processes at least.

    #72996
    Dominic Sullivan
    Participant

    I agree with the above comment from Rong. Approx 1-5% of the transaction value is a reasonable amount.

    #73195
    Sarah Miller
    Participant

    This is an excellent question. Our company is small and has acquired some other smaller companies in the last few years. We are now strongly and carefully combing through the financials which should have been done long ago, more thoroughly in the due diligence process. The budget aspect is something I am sure was never thought of. Thanks for posting.

    #73415

    Hi Joshua, very interesting question, I think you would have to look at your own M&A strategy. The lower the spend on the DD theoretically could equate to missed opportunities to fully understand the target organisation. Your budgets and resource provisions could depend on questions such as, will the target company be a long term investment, will it be “flipped” soon after purchase, is there a requirement for external companies to carry out your DD or is it carried out in house? Is there a Vender DD being carried out, to what detail will the buyer DD be? The risks have to be evaluated and fully understood.

Viewing 7 posts - 1 through 7 (of 7 total)
  • You must be logged in to reply to this topic.

Are you sure you
want to log out?

Book a Demo

Book a Demo

Contact us to discuss your goals and needs!

Contact us to discuss your goals and needs!

Request a Brochure

Request a Brochure

Contact us to discuss your goals and needs!

Contact us to discuss your goals and needs!

In order to become a charterholder you need to complete one of the IMAA programs