When it comes to selling your business, a reliable and professional vendor due diligence (VDD) or vendor assistance service can help to maximise its value and minimise the risks.

Nearly every M&A process involves due diligence, whereby a potential buyer performs an in-depth assessment of the business’ financial robustness and commercial potential.

Selling a company can be a highly demanding and time-consuming process for owner managers. It places significant strain on the company’s resources, particularly affecting key management and finance teams who must respond to the preferred bidder’s due diligence enquiries, involving comprehensive requests for financial, commercial, IT, legal, and HR information, while simultaneously managing day-to-day operations. Rather than allow the bidder to lead the due diligence process, a seller can undertake what’s known as vendor due diligence (VDD), whereby they mandate an adviser to prepare a financial and tax review. Presented initially to the seller, a VDD is later shared with potential buyers.

• Seller maintains full control over the type and scope of information being disclosed to potential investors
• The early identification of key issues allows the sell-side to eliminate/mitigate prior to disclosure to bidders as well as message identified risks
• It maximises exit value through the early and thorough identification of adjustments to EBITDA and working capital
• It allows more investors to participate in the negotiation process, which should improve the sell-side's bargaining position
• Time and resources savings – shorter involvement of the target’s financial and accounting personnel; a single due diligence process instead of separate due diligence processes for each investor
• Time-efficiency leading to faster transaction completion.

A vendor assistance report is a lighter touch review which covers much of the same scope as a VDD but at a higher level and typically at a lower cost. Because of the lighter touch nature of the work, no duty of care is accepted to the ultimate purchaser of the business.

At Evelyn Partners, our team of experienced and qualified experts can provide you with comprehensive and flexible VDD services tailored to your specific needs and objectives.

As a founding member of CLA Global Limited (CLA Global), Evelyn Partners provides a truly international service.  We can help you navigate the cross-border tax and regulatory issues that may arise in your deal, and provide you with access to our in-house specialist teams in areas such as business tax, employee benefits, IT and pensions.