What is pre-DD project?

Hi there,

A pre-DD occurs before the deal has been negotiated. This is to essentially figure out if the target is even attractive. Of course, there's a lot less information to go off of, so a lot of this will be based on publicly available information. A lot more is on the market situation as well as a general view of company's position/defensibility.

It's a DD that is 100% an outside view, as it is during the pre-bid stage and you don't have access to information provided by the target yet (because they didn't agree to negotiate the transaction with the potential buyer). It is usually ligher (and may be shorter), focusing on th key market fundamentals. 

In some cases you don't go as far in order to confirm the assumptions, you just make sure you have enough information to know if you are directionally correct in a broad sense.

Hello!

It´s before the official DD (when you already have a clean-team, that gets all the important and super confidential information about the target). 

You are basically trying to assess if the target/whatever it is, is really interesting to progress with a full assessment. 

Hope it helps!

Cheers, 

Clara