It depends on the situation. Normally, due diligence involves opening (and auditing) books, assets, etc. This is generally focused on valuing the company and

It depends on the situation. Normally, due diligence involves opening (and auditing) books, assets, etc. This is generally focused on valuing the company and may be a long, protracted, affair or a cursory,"these are not the droids you're looking for," check for any crazy liabilities or Potemkin villages. In a given strategic landscape, the number will be multiplied by some factor. For example, if facebook bought a, twitter bought b, google bought c, d may end up getting pre-emptive offers from microsoft, yahoo, and other suitors. It may or may not be a rational move. In other cases, a "unique" offering may be snapped up on the news that a competitor is sniffing around. It can get crazy, with offers bumped up by hundreds of millions of dollars.