What are the advantages and disadvantages of opting for an inhouse DD approach vs. external DD experts?
Some aspects for me are:
pro inhouse: They know the buyer organisation and have a better insight into a possible integration as well as they know the industry
con inhouse: Will most likely put the buyer on a pedestal in comparison.
pro expert: open and unbiased view on both companies, better access to market data/experts
con expert: some aspects will be more on the surface as the deeper understanding is maybe missing
I do agree with your inputs. I would say that in house may provide insights given the industry knowledge but external dd would typically have taken similar DD involving the same industry so they could have the industry insights too.
I think a mix of both makes sense, depending on the capabilities available inhouse. For example, external experts may be needed for legal and tax matters, whereas technical and commercial topics can be covered inhouse
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