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.

Viewing 9 posts - 1 through 9 (of 9 total)
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  • #121468

    Bernardo Lima
    Participant

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

    #121623

    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.

    #121719

    Charles Ladas
    Participant

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

    #121732

    Yazeed Albaiz
    Participant

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

    #121740

    Dmitry Govorov
    Participant

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

    #122211

    Mohammad Alageeli
    Participant

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

    #122410

    Boon Hon Low
    Participant

    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.

    #122485

    Evgeny Gorbunov
    Participant

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

    #122535

    Sumit Ram Bani
    Participant

    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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