When Does Due Diligence Period Start and How Long It Usually Lasts
When Does Due Diligence Begin and What Should You Prepare First
October 30, 2025
When Does Due Diligence Period Start and How Long It Usually Lasts – Hello, valued readers of SIEMA KONSULTAN across Indonesia! Are you considering an acquisition, investment, or other business transactions? If so, understanding the Due Diligence process is crucial to ensure your deals go smoothly and securely. In this article, we will provide a comprehensive overview of when the Due Diligence period begins and how long it typically lasts. We hope this information will be beneficial for you seeking reliable guidance in business transactions, and don’t forget, SIEMA KONSULTAN is here to assist you with the best Due Diligence services across Indonesia.
What is Due Diligence?
Before diving into the specifics of timing and duration, it’s important to understand what Due Diligence really is. Simply put, Due Diligence is a thorough investigation or review of a company, asset, or business transaction before an official agreement is finalized. Its main goal is to ensure that the buyer or investor gains a complete understanding of the financial, legal, operational, and potential risk aspects involved.
When Does the Due Diligence Period Start?
The Due Diligence period generally begins after both parties—the seller and the buyer—reach an initial agreement, often called a Letter of Intent (LoI) or Memorandum of Understanding (MoU). Once this preliminary agreement is in place, the Due Diligence process becomes a critical step requiring in-depth investigation.
Typically, the Due Diligence period starts immediately after the initial agreement has been made and key documents are handed over for review. At this stage, the buyer’s or investor’s team begins collecting documents and conducting detailed analyses of the target company. Therefore, it can be summarized that the Due Diligence period begins once an initial agreement is reached and essential documents are provided for examination.
How Long Does Due Diligence Usually Last?
The duration of Due Diligence varies significantly depending on the complexity of the transaction, the size of the company, and the scope of review. Generally, this process can take from a few weeks to several months. Here is an overview based on different types of transactions:
- Small to Medium-Sized Deals: Usually last around 2 to 6 weeks. The process is relatively quick because the amount of data and documents to review is manageable.
- Large Corporate Transactions, Mergers, or Major Acquisitions: Can take anywhere from 2 to 6 months or even longer. This is due to the in-depth analysis required across legal, financial, operational, and strategic risk areas.
- Real Estate Due Diligence: Typically lasts between 4 to 12 weeks, depending on the complexity of the property and legal documentation involved.
Factors Influencing the Duration of Due Diligence
Several factors can affect how long the Due Diligence process takes, including:
- Transaction Complexity: More complicated deals with numerous aspects to review tend to require more time.
- Availability of Documents: Complete and easily accessible documentation speeds up the process, while scattered or incomplete data cause delays.
- Cooperation from the Seller: The responsiveness and cooperation of the seller in providing necessary information significantly impact the timeline.
- Number of Stakeholders: Involving multiple parties such as auditors, legal advisors, and consultants requires coordination, which can extend the process.
Understanding when the Due Diligence period begins and how long it lasts is vital in any business transaction. Typically, this process starts after initial agreement and can last from several weeks to months, depending on the transaction’s complexity. Being aware of this timeline helps all parties prepare properly and ensures a smooth, secure transaction.
If you need professional and reliable Due Diligence services across Indonesia, SIEMA KONSULTAN is your trusted partner. We have extensive experience assisting companies and investors in conducting comprehensive Due Diligence to ensure accurate and thorough results.
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