Due Diligence

Due diligence usually starts once a letter of intent is signed. It covers the numbers and the adjustments (financial), tax risk, contracts and disputes (legal), the market (commercial), processes, IT and people (operational), and, where it matters, the environment. A DACH mid-market review typically runs four to eight weeks. The data room and the discipline of Q&A set the pace. Diligence also tests the adjustments in the indication and can move the purchase price. Sellers who have already cleaned up the main issues (vendor DD) cut that risk sharply.