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. PwC provides comfort to both buyers (acquires) and
sellers (vendors) with an independent view of the business, encompassing its
performance and prospects.
Vendor 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.
Our 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.
How we can support
you
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Potential issues
- 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.
How we can support you
- 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.
Vendor 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 only.
More about PwC's financial due diligence services
- Vendor due diligence is an in-depth report on the financial health of a
company 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
- Vendor assistance provides bespoke solutions to assist vendors in
successfully completing divestments. Vendor assistance is provided for the
benefit of the vendor only.
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