What should be the ideal time frame to run due diligence? Obviously, it would be given the complexity of the transaction. But where should the ideal DD time frame fall into? The longer the period of time you might run into more risk i.e. COVID and the Pandemic. I know that is a once in lifetime event, but none the less it was something i am sure effected transactions. Please let me know your thoughts.
Although it is difficult to come up with a fixed or narrow range time frame to run due diligence, I would think that approaching the time frame from a coverage perspective would be meaningful especially given the risk that more risk might emerge over a longer due diligence time frame. When the company is able to cover all the different aspects of due diligence (Tax, legal, HR etc), it would probably be a right time to make a decision on whether to proceed with the M&A activity.
While the devil is in the details, I would agree with previous posts that you can’t fall into analysis by paralysis. Having a structured, repeatable process that has the flexibility to be updated based on what you’ve learned through different acquisitions seems to be the best strategy.
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