Seller's Due diligence, is it recommended?

This topic contains 8 replies, has 9 voices, and was last updated by  Sumit Ram Bani 4 days, 18 hours ago.

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    Bernardo Lima

    Is it recommended that the seller performs its own due dilligence before opening its M&A process to the market?


    I believe that is of huge help if a Company is not afraid to be transparent with the buyer.
    It can be easily done on Excel or Word for a number of functions and by country.This facilitates the work of (1) M&A office and (2) the one of the Divestiture/Spin-Off teams later on.
    In groups or companies with M&A dedicated)offices, the preparation of preliminary DD material by country may be even required to Functions/Business so that the buyer is given it to understand what is purchasing.


    Charles Ladas

    Yes, the seller should do its own due diligence to prepare itself for due diligence performed by prospective buyers.


    Yazeed Albaiz

    Yes, it is recommended. It helps the seller prepare for any potential offer.


    Dmitry Govorov

    Yes – this may also be needed for a buyer from perspective of reputation / possible litigation check in case any issues with the seller


    Mohammad Alageeli

    Yes, it will help the seller to evaluate the firm and the offer and possible negotiation terms


    Boon Hon Low

    I believe it would be helpful in shortening the buyer’s DD process, providing level-setting information to all bidders, and be transparent on certain unique characteristics of the seller’s business that may not be discovered if the buyer’s DD service provider is not experienced. The vendor may leverage the latter insider’s information to ask for better pricing.


    Evgeny Gorbunov

    yes, highly recommended to do a seller DD in order to strengthen its position in upcoming deal.


    Sumit Ram Bani

    I would highly recommend conducting one’s own assessment as this will help the seller to ask for the right value of the business and to set the right expectations.

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