Qualified company-specific due diligence for the seller
From the compilation of data for the seller to vendor due diligence
A vendor due diligence can considerably simplify and accelerate a sales process. In this case, the due diligence investigation is commissioned by the seller to provide report on the results to potential investors.
This gives bidders access to meaningful and uniform information in order to prepare their purchase decision. The aim is to create an intensive competitive situation with several bidders without having to grant access to information, documents and persons to several due diligence teams and hence, to enable the smoothest possible transaction process.
Advantages of a vendor due diligence
- Simplification of the due diligence process for several prospective buyers
- Control over the seller’s access to resources remains with the seller during the selling process
- Transparency and uniform information quality can make the offer more attractive and thus prevent the premature loss of potential customers.
- Gain of knowledge for the seller to optimize transaction structuring, purchase price negotiations and other essential parts of the contract
- The seller retains control over confidential information because no internal documents are submitted, but only the result of the due diligence is communicated.
- Transaction costs tend to be reduced; closing is accelerated by just one due diligence process
- No information advantage on the buyer’s side within the scope of negotiations that may arise during a buyer due diligence
- Impairment factors can be identified and counteracted by the seller at an early stage
- Overall, more and fair competition between potential investors is generated
Scope and content of a vendor due diligence
We determine the scope of a vendor due diligence together with our client. The aim of a vendor due diligence is to prepare financial and non-financial information in the context of an objective analysis for passing it on to potential investors. For this purpose, all information relevant to purchasing prepared in the VDD examination is summarized into a vendor due diligence report.
In terms of content, the report should deal with all positive and negative aspects as well as potential risks and, when possible then quantify them. It also differs from the Information Memorandum, which is produced as a pure sales document on behalf of the seller.
All bidders are brought to the same level of information on the basis of the Vendor Due Diligence report. If a vendor due diligence has been carried out, the bidders often only examine specific questions within the framework of buyer due diligence. The M&A process is considerably shorter in these cases.
In addition to financial and tax due diligence, our offer also includes commercial due diligence for selected industries in which we have in-depth and extensive experience and detailed knowledge.