Vendor due diligence
Vendor due diligence involves a detailed assessment and the preparation of an independent report on a company which is issued to interested parties during the initial sales process and can be legally relied upon by the ultimate purchaser.
For vendors, we provide:
- Early identification and detailed analysis of key risks and issues for potential purchasers. This gives you the opportunity to ensure they can be mitigated or placed in the appropriate context prior to commencement of the acquisition due diligence process by potential purchasers; and
- Increased confidence for potential buyers through the presentation of a detailed financial due diligence report that reduces the cost and time associated for potential purchasers to due diligence.
Benefits of Vendor Due Diligence
This in turn can help to:
- Increase the number of parties that review the acquisition opportunity in detail;
- Reduce transaction costs and streamlining the acquisition due diligence process for all bidders; and
- Potentially increased sale proceeds due resolution / mitigation of key risk and valuation issues prior to the sale process commencing and the likelihood of more bidder in the sale process.
The PKF Corporate Finance approach to the Vendor Due Diligence process includes:
- Independent and detailed financial due diligence of your business;
- Commercially focused advice;
- Immediate feedback regarding issues as they arise;
- Progress reports detailing key risks and issues;
- Identification of the key drivers of the business;
- Identification of key people and contractual issues;
- Report on the significant risks (which may be able to be addressed prior to sale);
- Assistance through buy-side due diligence process;
- Constant communication of findings throughout the process; and
- A complete independent report issued to interested parties.
Cross Border Capability
PKF Corporate Finance has team of corporate finance and accounting professionals in key markets in Asia, UK & Europe, North America and South America. We work closely with these teams to ensure that cross border vendor due diligence assignments are executed smoothly and efficiently. This includes providing support in each market on financial due diligence and tax advice as required.