Typical due diligence cost for self-funded searchers?
September 21, 2022
by a searcher from University of Pennsylvania - The Wharton School in Philadelphia, PA, USA
What are the typical due diligence cost a self-funded searcher should expect? For those who did self-funded searched I would appreciate your input on what your costs were. For those who targeted to keep their due diligence cost as low as is practically possible, what were some of the things you did to minimize the cost of DD?
in Barcelona, Spain
Once you are sure that there is nothing big, proceed to a full scope DD, trying to keep some of the costs as a success fee, which you could put as an acquisition cost, once you have decided to proceed.
During the full scope DD, I would recommend you divide between P&L and BS, so that the advisor only charges you what he or she is doing, so that you can stop the DD whenever you find out something major. I hope this helps.
PS: I have not conducted a deal in a SF, but worked as an advisor in Financial Advisory and these are the typical things that work to lower the budget. For any doubt do not hesitate on contacting me.
from Bentley College in Miami, FL, USA