When a company is up for sale - or selling off one of its parts - it
needs to show an in-depth report on its financial health to potential buyers.
This is called vendor due diligence. We provide comfort to both buyers
(acquirers) and sellers (vendors) with an independent view of the business,
encompassing its performance and prospects.
due diligence aims to address the concerns and issues that may be relevant to
even the most demanding purchaser. For vendors undertaking a disposal or
selling off a part of their own business, vendor assistance provides bespoke
solutions to assist you in successfully completing your divestments.
Vendor due diligence is
an in-depth report on the financial health of a company or part thereof that is being sold. It
provides vendors with greater control over the sale process and the timing of
sale, which can, in turn, help secure a higher price for the business.
provides bespoke solutions to assist vendors in successfully completing
divestments. Vendor assistance is provided for the benefit of the vendor only
vendor assistance specialists work alongside company management and their lead
advisers throughout the process, ensuring that opportunities and issues are
understood and the correct steps are taken.
The support we offer
- Your company's strategy
involves disposing of part of the business, whether through a carve-out of
business units, or by the sale of existing entities
- Your company is in the
process of restructuring/re-focusing its activities
- You want to reposition
your portfolio focus on core businesses, or return value to shareholders
- You have started to feel
pressure from financiers as a result of deteriorating financial ratios
assistance is potentially more suitable in situations where the likely
purchasers are trade buyers and can be less time consuming than 'full scope'
vendor due diligence. The key difference between vendor due diligence and
vendor assistance is that the latter is provided for the benefit of the vendor
- Provide vendors with
greater control over the sale process and the timing of sale, which can help
secure a higher price for the business
- Provide purchasers with
greater certainty over the nature of the business and the characteristics of
its cash flow. This helps pricing decisions and the level of gearing the
structure will support
- Reduce disruption to the
business as the sale process is more controlled
- Help add credibility to
the facts, figures and information provided in the sales memorandum
- Remove the necessity for
a buyer to have substantial access to do their own due diligence work as they
will be able to rely on the vendor due diligence report
- Vendor assistance
specialists can ensure that the vendor retains pace and initiative throughout
the sale process
- Early identification of
value critical issues, providing the option to "regroup and fix"
outside the glare of publicity
- Rapid execution of the
divestment from the point of announcement. This reduces the business disruption
and accelerates transfer to new owners
- Reduces uncertainty risk
for finance buyers, potentially justifying higher offers