How is due diligence different from research?

Due diligence is transaction-driven and has a defined timeline; research is broader and ongoing. Expert-network work supports both — DD is one application of primary research.

Who pays for due diligence?

Typically the buyer for buy-side DD; the seller for vendor-DD/sell-side DD. Cost is borne by the fund or strategic acquirer respectively.

What does a typical DD engagement cost?

CDD alone runs €25-80k for primary-research components, or €100-500k for full-service DD from Big Four / boutiques. Total deal DD spend can run 0.5-2% of deal value.

Due Diligence

Due diligence is the systematic pre-transaction investigation of a target — typically a target company or asset — across commercial, financial, legal, technical and regulatory dimensions. Each dimension is a separate diligence stream often run in parallel.

Term: Due Diligence
Section: Glossary
Last refreshed: Q1 2026

01/In Depth3–5 paragraphs

Commercial due diligence (CDD) assesses competitive position, customer health, market dynamics. Financial due diligence (FDD) audits the historical numbers. Legal due diligence reviews contracts, IP, employment and litigation. Technical due diligence reviews product, infrastructure and IP. Regulatory due diligence reviews compliance and pending regulatory exposure.

Expert networks support primarily the commercial and regulatory streams. Customer references, channel checks, competitor interviews and operator panels feed CDD; ex-regulator interviews and policy specialists feed regulatory diligence.

Diligence timelines vary by deal type: private-equity buyouts typically run 4-8 week diligence sprints; strategic M&A may run 8-16 weeks; competitive auctions may compress to 2-3 weeks. Expert-network components typically run on 2-4 week sub-timelines.

The output of due diligence is the IC paper (PE) or board memo (strategic M&A). Primary-research findings from expert work are typically integrated into the commercial section, often with a separate appendix documenting methodology and sources for post-close audit.

02/Examples4 concrete cases

+A PE fund running 6-week diligence across CDD, FDD, legal, technical and regulatory streams in parallel
+A strategic acquirer running 12-week diligence on a transformative acquisition
+A PE fund running accelerated 2-week diligence to meet a competitive bid process
+A growth fund running focused 2-week CDD on a Series D investment

03/Frequently Asked3 questions

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04/See AlsoWhere this applies

04.1

EXPERT CONSULTATIONS

One-hour calls with vetted operators, executives and specialists across 50,000+ professionals. Scheduled in 3 to 5 business days. From €500.

04.2

COMMERCIAL DUE DILIGENCE

Buy-side and sell-side CDD built on operator and customer interviews.

05/Related Terms3 suggestions

CDD

Commercial Due Diligence (CDD) is the process of assessing a target company's competitive position, customer-base hea…

EXPERT NETWORK

An expert network is a marketplace that connects buyers (investment funds, corporates, consulting firms) with vetted …

PRIMARY RESEARCH

Primary research is original data collected directly from sources — operators, customers, channel partners, ex-employ…

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