Our approach to a vendor due diligence is to take the lens of a potential buyer, and to orient the work around the areas where they are likely to focus. This involves identifying segments that generate the most revenue, segments that are projected to generate the most growth, and segments that may be at risk, if any.

We take the “buyer lens” approach for several reasons. Sellers and bankers are finding that the vendor due dilligence fact-base and insights help keep potential buyers in the sales process longer (particularly applicable with an auction). Notably, it is generally the primary research and synthesized view of the market dynamics that they find most valuable (as most potential buyers have analysts who can pull publicly available data). 

In exit planning, we help identify the best natural buyer, allowing us to work backward to develop the thesis. This process may begin as early as pre-acquisition, encompassing value creation, vendor due diligence, and developing the equity story and ownership strategy.

In vendor due diligence, we work with clients to objectively lay out, utilizing a robust factbase, the dynamics of the market and the company’s position in that market. We break down complexities to ensure the market is well-understood by potential buyers, arming them with the necessary insights.