Distinctions in CDD: Private vs. Public Companies PPT

This PPT slide, part of the 63-slide Commercial Due Diligence (CDD) PowerPoint presentation, outlines the distinctions in commercial due diligence (CDD) processes for private versus public companies, focusing on 2 main issues: the information provided and the duration of the due diligence process.

For private companies, the target's board has the ability to manage the confidentiality of information shared with bidders. This involves requiring a signed Confidentiality Agreement before disclosing any sensitive data. The information shared tends to be basic and includes confidential business plans, which are not available publicly. The duration of the due diligence process can vary significantly, taking days, weeks, or even months, depending on the agreements made between the parties involved.

In contrast, public companies follow a similar protocol regarding confidentiality, with the board also differentiating the information shared with bidders. However, the process is generally more streamlined. Due diligence for public companies often takes just a few days. This efficiency is crucial in auction scenarios where maintaining momentum is vital. The slide suggests that public companies can provide consistent information to all bidders and facilitate quicker admission to subsequent rounds of bidding.

The takeaway here is that understanding these differences is essential for stakeholders involved in transactions. For private deals, the extended duration and confidentiality requirements can impact the overall transaction timeline and strategy. Recognizing these nuances allows for better preparation and management of expectations throughout the due diligence process.

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