Budget for Financial due diligence for a under 5 million dollar acquisition

March 14, 2024
by a searcher in Austin, TX, USA
How much do you Budget for Financial due diligence for an under 5 million dollar acquisition?
March 14, 2024
by a searcher in Austin, TX, USA
How much do you Budget for Financial due diligence for an under 5 million dollar acquisition?
from Philadelphia University in Toms River, NJ, USA
from University of Victoria in Vancouver, BC, Canada
Legal fees for the deal vary widely by the firm, that will have the largest impact. I budget $20-50k for legal. Some of the national firms could easily rack up $75-125k on even a small deal.
Accounting fees, plan for another $10-25k for a light QoE and diligence. More like $50k including a more fulsome QoE
Lender fees - also varies widely between like $2k-5k for the main banks, up to about 1.5% of debt for lenders like BDC. They will all also have another $5-7k of legal fees that they pass on. So this lender fee can double overall deal costs pretty easily.
So on the light side, I would say $30k all in, more likely would be about $55k and a little more spendy is probably about $75k.