Any idea of the typical cost for a seller to build a data room?

intermediary profile

August 09, 2024

by an intermediary from Université de Montréal in Montreal, QC, Canada

As part of a deal we're supporting—with good financials, 10 years in business, solid margins, and a deal size of $2-3M—we need to prepare a data room. We'd appreciate hearing about others' experiences in this area. Based on your past deals, how much does the seller typically need to pay?

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Reply by an intermediary
from Université de Montréal in Montreal, QC, Canada
Thanks ^redacted‌ and ^redacted‌ for the info. My question was more focused on understanding the costs associated with hiring a consultant to help build, organize, and write the necessary documents for the data room, rather than just the tools themselves. If anyone has insights on typical consulting fees for this type of work, especially in the context of a $2-3M deal, I'd greatly appreciate it.
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Reply by a searcher
from The University of North Carolina at Chapel Hill in Atlanta, GA, USA
If this is a proprietary deal, you don’t really need to spend anything. If you are having trouble getting the owner to fill your data requests, you can get a freelancer with an M&A background to help. The value add isn’t so much getting the actual data as much as it is holding the sellers hand through diligence, which can be daunting for an owner.
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