Most diligence work is bought by acquirers, which is why the market talks to them. A seller engages the same providers for a different purpose: to prepare, to respond, and to keep the owner free to run the business while somebody else answers the request list.
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Who does what, from law firms to due diligence advisory boutiques
Accounting firms with transaction teams do financial and tax diligence and quality of earnings work. Law firms do legal diligence. Specialist consultancies do commercial, IT, technical and environmental streams. Boutique advisers coordinate. For a small sale a single accounting firm and a lawyer cover almost all of it.
When a seller should engage an M&A due diligence consultant
Where the sale is competitive and a vendor report will shape the bidding. Where you know the accounts have grey areas that will be found. Where the owner cannot be absorbed by the process without the business suffering. Outside those cases, a prepared file and a responsive accountant are usually enough.
Choosing and scoping M&A due diligence consulting
Ask for transaction work in your sector at your size, the named team, and a written scope: years covered, entities, whether working capital is included, whether they attend calls with the buyer's team, and what happens if the scope grows. Fixed fee for a defined scope is common and worth asking for.
Questions people ask about due diligence services
How much do diligence services cost?
They are scoped rather than listed, and the scope drives the fee. Ask two firms for a written scope and price for the same brief.
Can my regular accountant do it?
For a small sale often yes. Transaction work is a different discipline from compliance accounting, so ask what sales they have worked on.
Is it worth it if the buyer is doing their own?
Sometimes. Its value is finding your problems first and having somebody credible to argue about adjustments on your behalf.
What do business due diligence services actually include?
It depends who is engaged: accounting firms with transaction teams do the financial and tax streams and quality of earnings work, law firms do legal, and specialist consultancies do commercial, IT, technical and environmental. A written scope is what makes the phrase mean anything.