Vendor due diligence has become a highly valued component in the M&A process. An in-depth report from an independent and trusted provider can both instill confidence in potential buyers and increase deal value.

Why vendor due diligence?

If you’re considering selling or carving out a portion of your business, or you’re a private equity firm selling off a portfolio company, the process of setting up an auction and attracting multiple, quality bids can be complex, time consuming and expensive.

In any transaction, due diligence is a must. Yet relying solely on buyer due diligence—and going through an exhaustive meeting and information request process for perhaps 10 or more different bidders—is an exercise in redundancy, using valuable resources and unnecessarily extending the deal timeframe.

Vendor due diligence gives you first knowledge, control of information dissemination and the ability to identify, address and comment on risk areas before a buyer raises them.

Options available

1. Full diligence report and SPA-related advisory services.
2. A detailed Data book (without commentary) buyers need to do their own analysis based on their own transaction goals and requirements.
3. Process support where we help you execute the process, such as managing data and helping respond to bidder requests.

Read our recent insight on vendor due diligence to find out more about the process and how our Transaction Services team can help.

Author: Conor Cullen, Associate Director, Transaction Services