Vendor Due Diligence
A Vendor Due Diligence (VDD) is a financial review of a sales object on behalf of seller which illuminates questions and issues that are relevant to potential buyers of the business.
Vendor due diligence involves a detailed assessment and the preparation of an independent report on a company which is issued to interested parties during the initial sales process and can be legally relied upon by the ultimate purchaser.
Benefits of Vendor Due Diligence
This in turn can help to:
• Increase the number of parties that review the acquisition opportunity in detail;
• Reduce transaction costs and streamlining the acquisition due diligence process for all bidders; and
• Potentially increased sale proceeds due resolution / mitigation of key risk and valuation issues prior to the sale process commencing and the likelihood of more bidder in the sale process.
Our approach to the Vendor Due Diligence process includes:
• Independent and detailed financial due diligence of your business;
• Commercially focused advice;
• Progress reports detailing key risks and issues;
• Identification of the key drivers of the business;
• Identification of key people and contractual issues;
• Report on the significant risks (which may be able to be addressed prior to sale);
• Assistance through buy-side due diligence process;
• Constant communication of findings throughout the process; and
• A complete independent report issued to interested parties.