How long does DD actually take?

Viewing 15 posts - 1 through 15 (of 15 total)
  • Author
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  • #58121
    Laurence Hall
    Participant

    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!

    #58315
    Craig Finley
    Participant

    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.

    #58324
    starla Pugh
    Participant

    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.

    #58578
    Raymond Teo
    Participant

    It can take a minimum of 30 days and up to 90 days and beyond, depending on the size and complexity of the deal.

    #58907
    Laura Sims
    Participant

    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.

    #59078
    Aly AlFaqi
    Participant

    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.

    #60235
    Vahid Sharif
    Participant

    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.

    #60300
    David Widmer
    Participant

    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.

    #60373
    Kishore Ganesh
    Participant

    Based on type of M&A, how big, small, complex. Qualitative and Quantitative data. approximate 6-12 week.

    #60432
    Zain Athar Mirza
    Participant

    It varies from acquisition to acquisition, depending on the deal and company size, and can be anywhere between 1 to 12 months.

    #60661
    Abdulrahman Aloyoni
    Participant

    The time of due diligence depends on the nature and complexities of the target company.

    #60921
    Tee Hui Leng
    Participant

    I agree the minimum DD time would take about 30 days to complete.

    #61243
    Zain Athar Mirza
    Participant

    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.

    #61676
    asalmen
    Participant

    The training said 40-80 days…

    #61788
    Ievgen Sheliekhov
    Participant

    Hi. 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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