We will confirm all of the material facts relating to the sale of a business, project or asset. The scope of the facts can be very diverse, encompassing a variety of subjects such as commercial, financial and /or operational due diligence. It also covers tax, compliance, human resource, IT, sustainability and legal considerations, amongst others.
Due diligence services can be broadly split into two categories: sell-side (or ‘Vendor’) due diligence and ‘Buy-side’ due diligence.
Vendor Due Diligence (VDD) typically consists of a comprehensive assessment of a business to be sold, commissioned by the vendor at the beginning of a sale process.
It provides a detailed understanding of the business’s historical performance and track record, generally combined with an independent view on the achievability of the business’s future plans and projections.
Buy-side Due Diligence is commissioned by a potential buyer of a business. It can therefore take place at various stage of the deal cycle, e.g. during the early phase of an auction process or to complement other due diligence work (‘top-up DD’). It can also be phased in the case of a deal process with multiple rounds.
The purpose of a buy-side DD is similar to the VDD - to confirm the attractiveness of an investment. However its scope and focus can vary greatly, depending, for instance, on whether the vendor has provided a VDD report, or whether access is given to the business and its management team.