How much does Due Diligence Cost in 2025?

Due diligence costs in 2025

A $75M SaaS acquisition can cost $230,000 in due diligence. A $25M Series B round might run $75,000. But a $450M manufacturing deal? That's $900,000—and that's before you factor in accelerated timelines, cross-border complexity, or industry-specific requirements that can add 30-50% more.

The difference between a $10,000 seed-stage review and a $2M+ mega-deal investigation isn't just about deal size. It's about understanding which costs you can control, which you can't, and how to optimize your budget without compromising quality. We'll break down real transaction examples, show you how Big Four firms compare to boutique specialists, and reveal strategies that can cut your due diligence costs by 20-40%—all while maintaining the thoroughness your deal requires.

Quick recap of due diligence costs

• M&A Due Diligence Costs
• Investment Due Diligence Costs
• Legal Due Diligence Costs
• Financial Due Diligence Costs
• Operational Due Diligence Costs
• IT Due Diligence Costs
• Environmental Due Diligence Costs
• HR Due Diligence Costs

Types of due diligence and their costs

Due diligence costs vary dramatically based on deal size, complexity, and industry. Here's what you can expect to pay in 2025:

1. M&A due diligence costs

M&A transactions require the most comprehensive due diligence, covering legal, financial, operational, and strategic aspects of the target company. Small deals under $10M typically cost $25,000 to $50,000, while mid-market deals between $10M and $100M range from $50,000 to $150,000. Large deals from $100M to $1B can cost $150,000 to $500,000, and mega deals over $1B often exceed $500,000, sometimes reaching $2M or more.

What drives these costs? Deal size and transaction complexity play major roles, as do the number of business units and subsidiaries involved. Geographic footprint matters too—cross-border deals cost significantly more. Industry regulations add complexity: healthcare, finance, and energy sectors are pricier due to compliance requirements. The quality of the target's documentation also impacts costs, and timeline pressure can add a 20-40% premium for accelerated deals.

Looking to streamline your due diligence process? Learn about virtual data rooms for due diligence

2. Investment due diligence costs

Investment due diligence evaluates potential investment opportunities, from early-stage startups to pre-IPO companies. Seed and Series A startups typically cost $10,000 to $25,000, while growth-stage companies in Series B-C rounds range from $25,000 to $75,000. Late-stage and pre-IPO companies can cost $75,000 to $200,000, and strategic investments usually fall between $50,000 and $150,000.

The company's stage and maturity significantly influence costs, as does the investment size—larger checks require more scrutiny. Industry complexity drives expenses too: deep tech and biotech companies cost more due to specialized expertise required. The number of investors in the round and regulatory requirements also impact the final bill.

3. Legal due diligence costs

Legal teams review contracts, compliance frameworks, litigation risks, and intellectual property portfolios. Small companies typically cost $15,000 to $30,000, mid-sized companies range from $30,000 to $75,000, and large enterprises can cost $75,000 to $200,000.

The volume of contracts matters—reviewing hundreds versus thousands of documents significantly impacts costs. Regulatory complexity in industries like healthcare, finance, and energy drives expenses higher. Active litigation or disputes require additional review time, and IP portfolio size and quality affect the scope of work. International operations across multiple jurisdictions add complexity and cost.

4. Financial due diligence costs

Financial due diligence validates revenue, expenses, assets, liabilities, and financial projections. Small companies typically cost $20,000 to $40,000, mid-sized companies range from $40,000 to $100,000, and large enterprises can cost $100,000 to $300,000.

Financial complexity drives costs—companies with multiple revenue streams and subsidiaries require more analysis. Accounting quality matters too: GAAP versus non-GAAP reporting and audit history impact review time. The number of entities to consolidate adds complexity, and international operations introduce currency and tax complexity. The quality of financial systems and records also affects how much time analysts need to spend.

5. Operational due diligence costs

Operational due diligence assesses business processes, technology infrastructure, and operational efficiency. Small companies typically cost $15,000 to $30,000, mid-sized companies range from $30,000 to $75,000, and large enterprises can cost $75,000 to $200,000.

Operational complexity drives costs—manufacturing and logistics operations require deeper analysis than service businesses. Geographic footprint matters: companies with multiple locations need site visits and regional assessments. Supply chain depth and dependencies add complexity, as do the technology stack and IT infrastructure. Workforce size and distribution also impact the scope of operational review.

Due diligence cost comparison table

Here's a comprehensive breakdown of typical due diligence costs across different deal types and company sizes:

Due diligence service provider price comparison

Compare costs across different types of service providers and VDR platforms to make informed budgeting decisions. Use our due diligence cost calculator to get a personalized estimate for your specific deal.

Real-world due diligence examples

Understanding actual costs from real transactions helps set realistic expectations. While specific cost breakdowns are typically confidential, here are examples based on publicly disclosed deals with industry-standard cost estimates:

1. M&A example: Salesforce's acquisition of Slack (2020)

Deal size: $27.7 billion
Target: Slack Technologies
Industry: Workplace collaboration platform
Employees: 2,000+ across multiple countries

Estimated due diligence breakdown:

• Legal review: $8-12 million — Multiple firms reviewed thousands of contracts, IP portfolios, and compliance frameworks across Slack's global operations
• Financial analysis: $10-15 million — Big Four firms validated Slack's recurring revenue model and multi-currency operations
• Technical assessment: $6-8 million — Code review and security audits of Slack's infrastructure
• Commercial evaluation: $4-6 million — Customer contracts and competitive positioning analysis
• Operational review: $5-7 million — Processes and infrastructure across multiple regions
• Tax and regulatory: $3-5 million — Cross-border structures and compliance
• Data room and coordination: $2-3 million — 6-month VDR subscription and project management

Estimated total cost: $38-56 million (0.14-0.20% of deal value)
Timeline: 6 months with multiple workstreams and regulatory approvals

2. Startup funding example: Stripe's Series H round (2023)

Round size: $6.5 billion Series H
Company: Stripe
Industry: Fintech
Employees: 7,000+

Estimated due diligence breakdown:

• Legal review: $1.5-2.5 million — Multiple firms examined cap table complexity, contracts, and regulatory compliance across Stripe's global fintech operations
• Financial analysis: $2-3 million — Validated Stripe's revenue model, unit economics, and international operations
• Technical due diligence: $1.5-2 million — Security assessments and scalability reviews of payment infrastructure
• Commercial validation: $800K-1.2 million — Customer interviews and market analysis
• Reference checks: $300K-500K — Founder, customer, and partner references
• Data room: $200K-300K — 3-month VDR subscription

Estimated total cost: $6.3-9.5 million (0.10-0.15% of round size)
Timeline: 3 months with multiple investors (including existing investors) participating

3. Large M&A example: Microsoft's acquisition of Nuance Communications (2021)

Deal size: $19.7 billion
Target: Nuance Communications
Industry: Healthcare AI
Employees: 7,100
Operations: Healthcare, financial services, and telecommunications

Estimated due diligence breakdown:

• Legal review: $12-18 million — Thousands of contracts, extensive IP portfolios, and healthcare regulatory compliance (HIPAA, FDA)
• Financial analysis: $15-22 million — Big Four firms conducted multi-entity consolidation and audit of healthcare revenue streams
• Operational review: $10-15 million — Multiple business units, healthcare facilities, and supply chains
• Environmental and regulatory: $6-9 million — Healthcare compliance assessments
• IT and cybersecurity: $8-12 million — Healthcare data infrastructure reviews
• HR and benefits: $4-6 million — Workforce analysis across 7,100 employees
• Tax and structuring: $5-8 million — Cross-border operations and tax optimization
• Data room and coordination: $3-5 million — 8-month VDR subscription and project management

Estimated total cost: $63-95 million (0.32-0.48% of deal value)
Timeline: 8 months with multiple workstreams, regulatory approvals, and healthcare compliance reviews

Real-world example: how family offices manage due diligence costs

See how G.P. Loree & Co., a New York-based family office, uses Papermark to efficiently manage institutional investment due diligence while controlling costs:

Factors affecting due diligence costs

Transaction size sets the baseline, but complexity often drives costs more than absolute value. A $50M tech acquisition can cost more than a $100M real estate deal due to IP portfolio complexity. The number of business units, geographic footprint (cross-border deals cost significantly more), and regulatory requirements all add layers of complexity. Timeline pressure also impacts costs: standard 4-8 week timelines use base pricing, but accelerated 2-4 week deadlines add 20-40% premiums, and weekend or overtime work can cost 1.5-2x hourly rates.

Industry-specific requirements create substantial cost variations. Regulated industries like healthcare (HIPAA, FDA compliance) add 30-50% to costs, while financial services can add 40-60%. Technology deals require IP portfolio reviews and security audits, adding 20-40%, while manufacturing and energy sectors need environmental assessments that add 25-50%. Documentation quality also matters: well-organized virtual data rooms keep costs at base levels, but disorganized files add 15-30% for sorting and indexing, missing documents require $5K-$25K in additional investigation, and poor quality records add 20-40% for verification work.

Professional service provider selection dramatically affects your final bill. Big Four firms (PwC, Deloitte, EY, KPMG) command premium rates of $400-$800 per hour, while mid-tier firms charge $250-$500 per hour. Boutique specialists offer industry-specific expertise at $300-$600 per hour, and in-house teams have lower direct costs but carry opportunity costs of internal resources. The right provider mix—matching expertise to complexity—can optimize costs without sacrificing quality.

Cost-saving strategies for due diligence

Smart planning and the right tools can reduce due diligence costs by 20-40% without sacrificing quality:

1. Use virtual data rooms

VDRs eliminate physical meetings, reduce travel costs, and speed up document access. Modern platforms like Papermark offer AI-powered organization and analytics.

Cost savings:

• Eliminate travel expenses ($5K-$50K saved)
• Faster document access (reduce timeline by 1-2 weeks)
• Automated tracking (reduce admin overhead)
• Better organization (reduce review time by 15-25%)

Papermark's data room solution starts at €149/month for data rooms, significantly cheaper than enterprise VDRs that charge $5,000-$15,000 per month.

2. Prioritize high-risk areas

Focus expensive expert time on deal-breakers first. Use a risk-based approach to scope work.

Prioritization strategy:

• Week 1: Identify deal-breakers (legal, financial red flags)
• Week 2-3: Deep dive on high-risk areas
• Week 4+: Validate remaining assumptions
• Result: Catch issues early, avoid wasted effort on doomed deals

3. Leverage AI and automation

AI tools can review documents 10x faster than humans, reducing legal and financial review costs.

Technology benefits:

• AI document review: 60-80% time savings on contract review
• Automated compliance checks: Instant flagging of regulatory issues
• Digital workflows: Reduce coordination overhead
• Analytics dashboards: Real-time visibility into progress

4. Right-size your team

Over-staffing wastes money. Under-staffing delays deals. Find the sweet spot.

Team optimization:

• Use senior partners for strategic decisions only
• Leverage associates for routine document review
• Bring in specialists only when needed (not full-time)
• Clear communication reduces rework and delays

5. Standardize and reuse

Templates and checklists reduce setup time and ensure nothing gets missed.

Standardization benefits:

• Reusable due diligence checklists (save 10-20 hours setup)
• Consistent reporting formats (reduce review time)
• Template contracts and analysis frameworks
• Best practices from previous deals

Due diligence cost calculator

Estimate your due diligence costs based on deal size, type, complexity, and timeline. Our calculator uses industry-standard multipliers and real transaction data to provide accurate estimates.

Key variables the calculator considers:

• Transaction size and deal type (M&A, PE, VC, IPO)
• Complexity level (low, medium, high, very high)
• Number of documents to review
• Data room duration
• Geographic scope
• Industry-specific requirements

Calculate Your Due Diligence Costs

Conclusion

Due diligence costs in 2025 can vary significantly based on multiple factors, from transaction size to industry requirements. While these costs are necessary for making informed business decisions, there are strategies to optimize and manage them effectively. By leveraging technology, particularly virtual data rooms, and implementing efficient processes, businesses can conduct thorough due diligence while controlling costs.

Remember that while cost is an important consideration, the quality and thoroughness of due diligence should not be compromised, as it can prevent costly mistakes and ensure successful transactions.

Frequently asked questions