July 30, 2021 at 2:13 am #36301Bernardo LimaParticipant
Is it recommended that the seller performs its own due dilligence before opening its M&A process to the market?August 8, 2021 at 8:31 am #38918Laura Manganotti MillsParticipant
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.August 12, 2021 at 2:08 am #38941Charles LadasParticipant
Yes, the seller should do its own due diligence to prepare itself for due diligence performed by prospective buyers.August 12, 2021 at 9:54 am #38944Yazeed AlbaizParticipant
Yes, it is recommended. It helps the seller prepare for any potential offer.August 12, 2021 at 10:55 am #38950Dmitry GovorovParticipant
Yes – this may also be needed for a buyer from perspective of reputation / possible litigation check in case any issues with the sellerSeptember 3, 2021 at 9:21 pm #39031Mohammad AlageeliParticipant
Yes, it will help the seller to evaluate the firm and the offer and possible negotiation termsSeptember 13, 2021 at 6:05 am #39046Boon Hon LowParticipant
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.September 16, 2021 at 2:45 pm #39050Evgeny GorbunovParticipant
yes, highly recommended to do a seller DD in order to strengthen its position in upcoming deal.September 17, 2021 at 11:15 pm #39055Sumit RambaniParticipant
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.October 1, 2021 at 1:18 am #39083Aaron TeoParticipant
It seems recommended. However, I think that in practice only big corporate (and not those SME) will be incentivised to conduct such DD given that there are costs (both time and money) invovled.October 20, 2021 at 7:28 am #39160Shuvam KoleyParticipant
Yes. It is recommended so that the seller can assess the proper value of its business and assets and accordingly negotiate with the buyer, thus setting right expectations.October 31, 2021 at 9:39 pm #39214Craig HaslerParticipant
Thanks for the prompt…clearly there is a lot of interest.
I tend to agree with many of the points above in the fact that a seller should complete its own assessment of any businesses it plans to sell prior to engaging third-party partners. The quality of the assessment will obviously depend on the size of the seller (resources available and timeline), but especially for larger transactions (spin-offs, divestitures, carve-outs), an internal evaluation will help to streamline the future selling process, as well as potentially strengthen the sellers negotiating position.
All the best.
CraigNovember 16, 2021 at 6:33 am #39268Anandan RajagopalanParticipant
Yes pls. I too believe it is highly recommended to do seller’s due diligence to have an idea on where they stand in terms of strategy and M&A idea and M&A business case prior to M&A process preparation.
Without doing DD on these two components, doubt the target company can attract prospective buyers and high possibility of deal failure.
To begin with strategy and M&A idea, this is where seller would initiate an idea on why and what to sell like whole business/carve-out by analyzing its corporate strategy (portfolio/transformation/divestment strategy) Vs business strategy (increase financial returns/increase strategic focus/reduce operational complexities)
Next stage lead to M&A business case due diligence – To find out sell-side strategy and its scope, target investors (strategic Vs financial), legal term sheet outline (SPA, APA,FPA,TSA)November 21, 2021 at 2:53 pm #39287Kwan Yen SeeParticipant
I agree with the module content. Seller should complete its own assessment of any businesses it plans to sell prior to engaging third-party partners.November 25, 2021 at 12:03 pm #39326Sultan AlrammahParticipant
Yes, It is highly recommended for the benefit of Seller
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