Needed internal Team for DD

This topic contains 3 replies, has 4 voices, and was last updated by  Marcelo Lopes Abud 1 year, 3 months ago.

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  • #68769

    Tobias Rohrbach
    Participant

    Which resources the seller side has to provide to provide all relevant areas of knowledge for a DD?
    What kind of roles are needed and which effort should be expected?

    #70891

    jimyerxa
    Participant

    I’d suggest it is more important for the buyer to be concerned with what resources they want the seller to provide in this buyer beware world 🙂

    #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.

    #83206

    Marcelo Lopes Abud
    Participant

    Seller`s role in a DD process is very important!

    If owners (or Company) wants to defend their assets (and dont sell it) or if they want to sell their company, investment on a good Due Diligence team should help they having a good performance regarding their objectives! Good quality of reporting in the Due Diligence will help Companies to defend their value in a strong whey, avoiding unfair discounts, making sure that your company will not be given away and that you earned what you deserve.

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