In some M&A cases, I have experienced that the buyer asks questions that indicate they are learning the target company in depth and try to figure out what operational actions they will make as an owner in order to improve operations. This through using the resources and costs of the current owner (the seller). Where do you draw the line of what information is necessary to receive during the DD process and what information the buyer should obtain when the transaction is done?
This is a delicate matter, and it might be relevant to indicate that the line isn’t clearly defined, yet, especially when reflecting such factor during the valuation (Equity to Bridge) or the quantification of it in the Risk Assessment/Management Plan.
in my opinion, the line is usually set by the target company, as they control the amount of information the acquirer receives. However, the line is only as far as the acquirer pushes it be (whilst ensuring all regulatory matters are met).
There is no sharp line and agree with Dalia that likely the amount that the target wishes to share will likely drive much of the information receives. This is where having trust and a developed relationship is critical to success in getting the right amount of information and sharing.