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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.

In the framework of the 15% minimum taxation rules for large international and domestic groups, also known as Pillar II, Belgian group entities were required to file a P2-Notification by July 13, 2024. This deadline is now postponed to September 16, 2024 for Belgian group entities that do not plan to make Pillar II prepayments in 2024.

On December 14, 2023, the parliament approved the introduction of the so-called minimum taxation. This is the Belgian implementation of the EU Pillar Two Directive (and aligns to a large extent with the OECD pillar 2 plans). The objective of this minimum taxation is to subject entities that are part of large corporate groups to an effective tax rate of at least 15%. The minimum tax will apply to taxable periods commencing as of December 31, 2023.