What is the size of acquisition to outsource DD to a third party?

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #114699
    Maggie
    Participant

    Is it determined by the size of target or acquiring companies?

    #116390
    Ahmed Alhishwan
    Participant

    The decision to outsource due diligence (DD) to a third party often depends on the complexity and size of the acquisition rather than a specific dollar amount. However, for acquisitions typically valued above $50 million to $100 million, organizations often consider outsourcing DD to specialized firms. This ensures thoroughness and expertise, mitigating risks and ensuring a comprehensive assessment. Smaller deals might also benefit from third-party DD if they involve significant complexities or unfamiliar markets.

    #117709
    Filippo Sabbioni
    Participant

    I think dd should always be outsourced to third parties unless we are talking of a really small deal.

    #118081
    Benjamin Ervin
    Participant

    The decision to outsource due diligence to a third party isn’t solely determined by the acquisition size. Instead, it hinges on the internal capabilities of the acquiring company. Key factors to consider include:

    1) Available resources: Do you have sufficient personnel dedicated to due diligence?

    2) Skillset and experience: Does your team possess the necessary expertise for the specific acquisition?

    By evaluating these aspects, you can determine whether outsourcing is the most efficient and effective approach.

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.

Are you sure you
want to log out?

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