Vendor DD: Why Does Your Business Need it?
A due diligence is a very important part in every M&A transaction. During a due diligence, the purchaser's legal, financial, tax and technical advisers review the provided documents and information to identify the key issues and risks associated with the target company and the business.
Results of due diligence usually impact a deal structure, purchase price and commercial decisions of the parties because risks identified during a due diligence are then addressed in the transactional documents.
In this article you will find:
- What is Vendor DD and when is it required?
- Objectives and benefits of the Vendor DD
- Internal procedures of Vendor DD
- Scope of risk assessment