My recommended approach is for the data migration team to conduct a proof-of-concept or prototyping exercise (just like many business apps teams do) to uncover challenges, test their assumptions and learn as much as possible about the data.
Then work closely with the business applications team to iteratively and incrementally prepare the data and the migration procedures.
Resources
Snapshot! for Dynamics CRM/365
XrmToolBox: ERD Visio Builder
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