Vendor Due Diligence (VDD)

Definition

A comprehensive due diligence exercise commissioned and paid for by the seller of a business prior to a sale process, with the resulting reports made available to prospective buyers. VDD typically covers financial, tax, commercial, and legal matters and is prepared by independent professional advisors. It accelerates the sale process, reduces the number of buyer due diligence queries, provides the seller with greater control over the information flow, and can support a higher valuation by pre-addressing potential buyer concerns.