Vendor due diligence

The client's situation

Our client would like to dispose of their company or of one of their group’s subsidiaries or activities.
The sale is organised by a business bank, and the assets to be disposed of are put on the market by means of a competitive tender intended to provide detailed information to several potential acquirers simultaneously.
Our client and his advisers wish to a comprehensive document on hand, produced to professional "Transaction Support" standards, which can be used by the acquirer and those involved in the financing process as a due diligence reference document.

The solution proposed by Accuracy

We offer an exhaustive report describing the situation of the assets to be sold, including:

  • An "executive summary"
  • A description of the business model
  • A thorough analysis of historical profitability for a given period (usually three years)
  • A net economic debt analysis
  • An analysis of the main items on the balance sheet and the off balance sheet commitments
  • Analysis of forecasts (the budget and business plan)
  • Other specific assignments according to the case in question

This report, which is initially prepared for our client, the vendor, is subsequently forwarded to the acquirer as part of a contractual process formally confirmed by means of a "reliance letter."

The Accuracy difference

  • Clear, relevant, and summarised conclusions in the form of tables
  • We focus on the quality of each analysis, avoiding any superfluous or unnecessary documentation that may make the report unwieldy or unreadable
  • The ability of our teams to analyse the "top line" of the business plan including: the market, competition, prices and changes; and to verify its coherence vis-a-vis the cost structure