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.
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.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.