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Vendor due diligence
A greater degree of information
A vendor due diligence report fills in the information needs of both strategic and financial buyers and gives you more control over the sales process. Deloitte gives prospective buyers the necessary insight and relieves your organization.
In a sales process, often several potential buyers are invited who all carry out their own book research. A vendor due diligence investigation can result in considerable savings in time and costs. Although vendor due diligence does not make buyers' own research redundant, the amount of work is considerably reduced. In addition, it gives more control over the sale process and strengthens the quality of the information to be provided to buyers.
The vendor due diligence report must meet the information needs of strategic and financial prospective buyers. Our report therefore provides information on a wide range of aspects of the company, such as:
- The market environment and the company’s position
- Organization, important processes, products, clients, suppliers, HR and IT
- Financial performance and trends, by segment or country
- Financial position and working capital development
- Cash flows and seasonality in results, cash flows and financing
- Forecasts, opportunities and risks
- Tax situation and risks
- Pension plans and resulting obligations
- Legal structures and risks
- Real estate situation
- Treasury and risk management
Our vendor due diligence investigation leads to one integrated report of findings. If necessary, we use modern techniques such as Data Analytics to create non-existent information from available data.
With a vendor due diligence, your company only needs to be thoroughly investigated once. This is efficient and limits the need to provide prospective buyers with early exclusivity, so that several prospective buyers can be kept in the sales process for a longer period of time, which benefits the management of the sales process and the proceeds.
Moreover, as a seller you are the first to be aware of due diligence findings. With this, negative aspects can be repaired in advance or properly addressed in the sales process. This prevents you from being surprised by prospective buyers during the process when they respond (too) negatively.
You will get optimal return from vendor due diligence by also using Deloitte's specialists for other forms of support. Consider, for example, the preparation of the information memorandum, mapping the valuation of the company, commenting on the sale and purchase agreement and, in the event of the company being split off from a group, an elaboration on the post-transaction carve-out or integration plans.