VENDOR INITIATED DUE DILLIGENCE

Vendor due diligence is an independent due diligence investigation of the value of the company, and is carried out on behalf of the vendor. A vendor due diligence provides the vendor with an overall picture of the risks associated with the sale of his company or a business unit to a third party. Vendor due diligence is an effective and efficient way to prepare the sale when there are several interested parties or when the carve out of a business unit is difficult to itemise. It will eliminate the need for a financial due diligence by the buyer. A vendor due diligence therefore saves costs and time, both for the vendor and for the prospective buyer. The vendor due diligence report provides advance insight into the vulnerable aspects of the sale and provides potential purchasers with a quick insight into the value and risks of the business to be acquired.