Vendor Due Diligence (VDD)
Vendor due diligence (VDD) involves the preparation of an independent, detailed report that is shared with potential buyers. This report provides a clear, consistent view of the business, helping to build credibility, reduce uncertainty, and streamline the due diligence process. The ultimate buyer will be able to place reliance on the Vendor Due Diligence report.
Vendor Assistance
In contrast, vendor assistance focuses on presenting financial information in a consistent format and providing ongoing support to management throughout the transaction. A report may be produced as part of the process but this is not always considered necessary as the ultimate buyer would not be able to place reliance upon it. Vendor assist engagements can include; preparing financial information, responding to buyer queries, coordinating data requests, and supporting management during negotiations.
Choosing the Right Approach
Both Vendor Due Diligence and Vendor Assistance are valuable tools in preparing for a successful transaction. The key is selecting the right approach to align with your deal strategy. VDD is most commonly utilised in structured or competitive sale processes, particularly for larger or more complex transactions where maximising value and maintaining control of the narrative are key priorities.
Vendor Assistance is typically delivered behind the scenes, enabling management to remain fully informed and well-supported without necessarily sharing adviser outputs directly with buyers (with the exception of financial data packs).
