While due diligence (DD) is a crucial step in any M&A transaction, its cost can be significant. However, there are strategies to leverage valuable resources at no upfront cost.
Free Tools and Services:
- Transaction insurance providers frequently offer complimentary DD scope assessments, providing an objective evaluation of your planned diligence activities.
- The freely downloadable Excel tracker developed by SingleSource Technologies empowers deal teams and advisors to effectively manage and track DD findings.
Limited-Cost Engagements:
- Many experts and advisors offer introductory services at no initial charge. This allows them to showcase their expertise and potentially secure future paid engagements.
- In rare cases, some advisors operate on a "no-win-no-fee" basis, where they only collect a percentage of the value preserved for the deal team.
Benefits for Deal Teams:
These free and limited-cost resources are particularly valuable during the initial stages of an M&A transaction, especially when budgets are tight. They provide deal teams with access to specialized expertise without the immediate financial burden, allowing them to:
- Gain valuable insights from seasoned professionals.
- Explore specific areas of due diligence they might not have experience managing.
- Mitigate risks associated with technical aspects of DD, such as insurance or cyber security.
Contributing to the Community:
By sharing these "diligence cheat codes," this blog post aims to empower deal teams and advisors to optimize their M&A processes.