Company Disposal and Generation Succession
Vendor Due Diligence or Vendor Assistance
As part of the Vendor Due Diligence process, we produce a detailed report with the assistance of the company management so that a secure data basis for the valuation of the company can be provided to prospective buyers. The result is a quicker and more efficient sales process.
Basically, the report contains historical financial data and planning data for the future, including an analysis thereof.
Your personal advantage as a seller is:
- process control remains in your hands
- value influencing factors can be identified in advance
- transaction costs as well as the amount of time your employees or external accountants are involved in the process are reduced
- the time frame, from the initial sales decision to conclusion of the contract, is reduced
- the presentation of identical, comprehensive, trustworthy and coordinated information for potential buyers
- all prospective buyers start with the same level of information
- a Vendor Due Diligence increases competitive intensity prior to granting exclusivity to a potential buyer
- prospective buyers can make a binding offer on the basis of the Vendor Due Diligence
- transparent information on the chances and risks of a potential investment in your company are available for potential buyers quickly and cost effectively – this enlarges the circle of potential buyers and increases the attractiveness of the auction process
- potential buyers, who will need to finance the purchase with foreign capital, will need to provide sufficient information to their financiers (banks or financial investors). A Vendor Due Diligence report provides the necessary information required and can therefore help to speed up the “deal” approval process. This is in your interest as it can help expedite the sale of the company
This process optimises the disposal of your company. A company analysis performed by an independent third party - the report is issued by Prax Consulting – increases a buyer’s trust, a necessity in order to close the deal without any problems.
If you are able to produce a Vendor Due Diligence report yourself, and only require our assistance therewith, we are happy to provide support within the scope of a Vendor Assistance. We assist you with the preparation of the financial data as well as with the setting up of a data room.
The above mentioned statements also apply to family conflicts in relation to questions on generation succession.
If you wish, we can provide information on the seminars available in our academy in which the structure and content of a Vendor Due Diligence are presented and explained.