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What is pre-DD project?

Due Diligence
Neue Antwort am 7. Dez. 2021
3 Antworten
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Anonym A fragte am 5. Dez. 2021

What is pre-DD project?

What's the difference between this and normal DD project?

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Ian
Experte
Content Creator
antwortete am 5. Dez. 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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.

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Pedro
Experte
antwortete am 5. Dez. 2021
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

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.

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Clara
Experte
Content Creator
antwortete am 7. Dez. 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

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

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Ian

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#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
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