SaaStr · 2015-08-06
· 3954d
Negotiating Tech Due Diligence Timelines in M&A: Is 6 Weeks Reasonable?
Jason Lemkin discusses whether a 6-week tech due diligence period requested by large corporate acquirers is reasonable. He advises pushing back on this timeline, noting that while acquirers request 6 weeks, they typically cannot meet even shortened deadlines due to internal organizational constraints. The key strategy is to negotiate firmly, create urgency through alternative options, and set hard deadlines.
Metrics in this report
Minimum Meetings Required in BigCo Tech DD
27meetings
typical
large corporate acquirer due diligence process
Negotiated Tech Due Diligence Duration
<4weeks
successfully achieved
founder-negotiated with acquirers
Standard Tech Due Diligence Duration Request
6weeks
typical ask
BigCo acquisitions of tech companies