Vendor assistance and vendor due diligence

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.