Vendor due diligence
Given the current uncertainty around funding a transaction, investors now require a greater degree of information prior to committing their own resources. A vendor due diligence report is ideal when there is competitive tension and a number of potential buyers.
The challenge for senior management is ensuring that the vendor due diligence reports provide a consistent sales message, while maintaining a robust and independent view, in order to instill confidence in potential buyers.
What we do
Our dedicated sell-side professionals are adept at providing vendor due diligence services across a wide range of industries and to a variety of clients. With professionals based in the UK, and access to global expertise, our expert guidance can be tailored to suit your needs and individual circumstances.
Working closely with your team, we identify and resolve issues in the divestment process, to provide a vendor due diligence product that enables you to retain control of the process, while reducing disruption to existing business. Our services normally go hand-in-hand with a managed sale process and controlled data room access. Our vendor due diligence offering can cover a number of areas that can be tailored to your needs, and the specific needs of the bidders, including finances (historical and future), tax, operations, commerce & strategy, and pensions & HR.
How we can help
Vendor due diligence is a key part of the sale process, where:
- The nature of the transaction means that due diligence will be a prerequisite for any bidder;
- There are a number of potential purchasers involved in the auction process;
- The timetable is tight and maintaining confidentiality is important
- Disruption to regular business activities must be avoided
- The transaction is complex in nature and there is a need to control the level of questions/information requests from potential purchasers.
The major benefit to you is that indicative bids will be of a better quality and you can retain control over the process.
Advantages of vendor due diligence
1. Deliverables:
- Key findings of the VDD are incorporated into the information memorandum;
- Input to the data room preparation;
- Question-and-answer sessions with potential bidders on VDD.
2. Process control:
- Provides greater control over the sale process and timing;
- Early identification of potential “deal-breakers”;
- Reduces the workload for the management of the Company and advisers of the seller and buyer, associated with the preparation of financial diagnostics.
3. Certainty:
- Provides greater certainty regarding the nature of the business and the characteristics of its balance sheet quality and profit flows. This helps in making pricing decisions and estimating the level of potential synergies;
- Adds credibility to the facts, figures and information provided in the information memorandum.
4. Early identification of potential “deal-breakers”:
- Reduces the possibility of the deal breaking down;
- Aids with early identification of value critical issues, providing the option to "regroup and fix" outside the glare of publicity.
Contacts
Dmitriy Anufriev
Partner,Corporate finance
tel.: +38 (044) 490 9000
fax.: +38 (044) 490 9001
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