This situation has come up before. The answer is that it depends. Let's say I do a diligence on behalf of PE Firm A (and the deal falls through) and PE Firm B

This situation has come up before. The answer is that it depends. Let's say I do a diligence on behalf of PE Firm A (and the deal falls through) and PE Firm B wants to use that diligence because they're looking to buy the company now. Legally/contractually I cannot let that PE Firm B see the diligence report I created, however I have seen situations where PE Firm B would purchase the report from PE Firm A, or the target would purchase it and give it to PE Firm B.