A vendor due diligence is performed at the request of the seller. The vendor due diligence report is provided to potential buyers as an information base for the planned transaction.
A vendor due diligence has the following advantages:
the seller controls the process
a more rapid selling process
by lowering informational risk, price discounts are reduced and contract
negotiations are simplified
the negative impact on day-to-day operations is reduced
the exclusivity for potential investors can be moved back in time
surprises for the seller can be avoided
the company is presented without bias
the reduction in transaction costs as a result of only one due diligence being performed increases the number of potential investors
A vendor due diligence can cover all components of an investor due diligence. The scope varies for each engagement.
