Best Practices in M&A Due Diligence

This report presents findings on the evolving landscape of M&A due diligence, emphasizing the growing complexity and duration of the process. It outlines how investment banks (IBs) are adapting to increased scrutiny and the integration of technology in their due diligence practices. The research, conducted by SRS Acquiom and Mergermarket, surveyed 150 senior executives from various IBs, revealing that nearly two-thirds of respondents indicate that due diligence now takes longer than before the pandemic, with many reporting an average extension of 1-3 months. Key challenges identified include the vetting of information and the need for reliable data, particularly concerning ESG factors. The report highlights the significant role of technology, with 80% of respondents noting its incorporation into their due diligence processes over the past two years. The findings suggest that as regulatory scrutiny increases, IBs must enhance their due diligence frameworks to address these challenges effectively.