How Long the Due Diligence Process Takes
How Long the Due Diligence Process Takes
The due diligence process will very rarely last one or two weeks.
Remember that the venture capitalist is also working on other transactions beyond your company.
The due diligence will typically last at least one month. If there are any complex issues such as environmental approvals that have not yet been met, further delays are likely.
When you are considering raising capital, make sure to get all your company records and documentation together in advance. You do not want to wait until you get a draft term sheet before trying to find important documents that the venture capitalist will need to move forward.
More and more venture capitalists are also worrying about environmental assessments. You may consider getting your company and property assessed before approaching an investor.
The venture capitalists will also want to speak with your clients, suppliers and bankers to get an understanding of how your company is regarded by the outsiders who deal with you on a daily basis.
The due diligence process will very rarely last one or two weeks.
Remember that the venture capitalist is also working on other transactions beyond your company.
The due diligence will typically last at least one month. If there are any complex issues such as environmental approvals that have not yet been met, further delays are likely.
When you are considering raising capital, make sure to get all your company records and documentation together in advance. You do not want to wait until you get a draft term sheet before trying to find important documents that the venture capitalist will need to move forward.
More and more venture capitalists are also worrying about environmental assessments. You may consider getting your company and property assessed before approaching an investor.
The venture capitalists will also want to speak with your clients, suppliers and bankers to get an understanding of how your company is regarded by the outsiders who deal with you on a daily basis.
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For more information, visit www.EvanCarmichael.com. |
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