Reply To: Needed internal Team for DD

#73122

Sa Li
Participant

For sure, more DD information will facilitate the transaction process. However, it also depends on how much would you like to spend in the DD process.

Basically, the online data room (VDR) serves as the base for your Due Diligence Process. There you need to upload all relevant documents about your company for the buyer to review. This is what you must have.

Moreover, you could consider preparing the financial fact book. It would be very helpful and can solve a lot of the buyer’s questions in advance.

Additionally, if you have more financial resource to use, you could also consider providing the commercial fact book, legal DD report and environmental DD report. Environmental report – depends on which industry you are in and how high the potential environmental risk is.

To summarize, as a seller, if you prepare more DD reports in advance, although you invest some money, you have the following benefits: a) The information will be trustworthy. Especially if the reports are prepared by well-known accountancy and consulting firms. b) It will save you energy to answer the buyer’s questions at a later stage, because a lot of areas have already been proactively explained in the reports. If you do not prepare any reports, you need to spend more time to answer the buyer’s questions on the VDR Q&A panel.

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