7.3.5 When do parties execute a due diligence process?

Figure 7.1 depicts a typical transaction timeline. A due diligence inspection typically starts quite early on in the process and generally ends just before completing the transaction. It is important that the experts who perform the due diligence process communicate their findings promptly to their client so that he can use the information in the negotiation process. Quite often, even in the final phases of a transaction, parties are still exchanging information (partly due to practical reasons because transactions involve complex matters, i.e. it takes time to collect everything, partly due to strategical reasons, i.e. late disclosure of important information sometimes affects the negotiation results less than information provided in an earlier phase of the negotiations).