In the world of mergers and acquisitions (M&A) the sales process of a company can be quite complicated. Being well prepared is thus critical. As corporate finance professionals, we assist the vendors with 2 important services, being Vendor Due Diligence (VDD) and Vendor Assistance (VA).
These services are often confused with each other. Yet each has its own purpose and offers unique benefits depending on the needs of the vendor. In this article, we will discuss the differences between VDD and VA, the benefits of both and how they help you make a transaction process run smoothly.

Vendor due diligence (VDD) is a powerful tool that is increasingly becoming part of the acquisition process of companies. Not only in complex, international acquisitions, but also in smaller-scale local acquisitions. Whereas traditional due diligence is typically carried out by the buyer, it is the seller who initiates the VDD. In this process, an independent external party conducts a thorough investigation of the company in question. The aim is to give potential buyers confidence, by providing transparent and accurate information upfront. This benefits the parties on both sides of the table.