Vendor due diligence
The vendor due diligence is mandated by the seller and comprises all information about the transaction object which is relevant to the decision-making process in form of a due diligence report for the potential buyer.
The areas of analysis covered by the financial vendor due diligence basically correspond to those of the financial due diligence. In contrast to our role as buy-side due diligence advisor, vendor-initiated due diligence requires us to act as an independent expert who analyses the deal object from the buyer’s point of view.
The benefits of the vendor due diligence are:
- More efficient sales process and improved process control for the vendor
- Potential deal issues are identified early, and thus, unpleasant surprises during negotiations are avoided
- Higher number or potential buyers due to lower transaction costs
- Increased transparency leads to reduced information risks and prevention of related purchase price deductions