- This topic has 14 replies, 14 voices, and was last updated 2 years, 5 months ago by Ievgen Sheliekhov.
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March 31, 2022 at 8:15 pm #58121Laurence HallParticipant
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!
April 8, 2022 at 5:23 pm #58315Craig FinleyParticipantCertainly 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.
April 8, 2022 at 9:25 pm #58324starla PughParticipantI 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.
April 17, 2022 at 8:12 pm #58578Raymond TeoParticipantIt can take a minimum of 30 days and up to 90 days and beyond, depending on the size and complexity of the deal.
April 29, 2022 at 5:49 pm #58907Laura SimsParticipantI 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.
May 8, 2022 at 6:23 am #59078Aly AlFaqiParticipantI 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.
June 7, 2022 at 1:22 pm #60235Vahid SharifParticipantI 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.
June 9, 2022 at 3:48 pm #60300David WidmerParticipantI 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.
June 12, 2022 at 8:06 am #60373Kishore GaneshParticipantBased on type of M&A, how big, small, complex. Qualitative and Quantitative data. approximate 6-12 week.
June 14, 2022 at 4:24 am #60432Zain Athar MirzaParticipantIt varies from acquisition to acquisition, depending on the deal and company size, and can be anywhere between 1 to 12 months.
June 20, 2022 at 10:11 am #60661Abdulrahman AloyoniParticipantThe time of due diligence depends on the nature and complexities of the target company.
June 23, 2022 at 1:05 pm #60921Tee Hui LengParticipantI agree the minimum DD time would take about 30 days to complete.
June 28, 2022 at 4:59 am #61243Zain Athar MirzaParticipantDepends 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.July 6, 2022 at 10:09 pm #61676asalmenParticipantThe training said 40-80 days…
July 11, 2022 at 10:05 am #61788Ievgen SheliekhovParticipantHi. In my experience it usually takes about a month. But the terms depend very much on the sellers’ action, e.g. how fast and full it provides requested information, replies to additional questions, etc.
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