Buy-side & vendor due diligence

RSM Belgium has extensive experience in carrying out buy-side due diligence and vendor due diligence.

What is a buy-side due diligence?

A buy-side due diligence is an analysis of the company to be acquired, conducted by the potential acquirer to identify and limit certain acquisition risks associated with the target company.

The areas analyzed are generally the following:

Review of the financial statements
Review of the business plan
Analysis of tax and social risks
Analysis of legal and regulatory risks
Analysis of the risks related to disputes and possible claims (current and / or potential)
Checking the ownership of the assets
Inventory of the guarantees
……

What is a vendor due diligence?

A vendor due diligence is comparable to an (acquisition) due diligence. This is requested by the shareholders of the company to be transferred and is intended for potential buyers. The aim is to convince the latter quickly and to allow him to also place a bid in a short time frame.

A vendor due diligence has several advantages and makes it possible:

To draw attention to weaknesses/problems in an anticipative way and thus securing the transaction and maximizing the value of the company
To speed up the acquisition process and keep it well under control
To disrupt the internal organization as little as possible during the acquisition process.

A vendor due diligence gives shareholders the opportunity to communicate in a consistent and secure way financial information to various buyers and potential investors.

It usually covers the accounting and financial (upstream and downstream) aspects but also the tax, operational, commercial, strategic, pension and personnel aspects.