In a ‘Vendor due diligence’, the vendor has its business thoroughly vetted before a sale. For Kruger, preparing for a sale means more than just due diligence.
A sales process is a demanding and time-consuming process for all involved. Moreover, for selling shareholder(s) and management, it can also be an emotional process. This process must be carried out professionally alongside all normal operational and other activities.
It is important to start preparation in good time to optimise the outcomes of the process and to avoid having to do everything at once during the process.
In the context of a Vendor due diligence, for example:
- Expanding interim reports with information relevant to interested parties
- Drawing up an investment plan
- Finalise or objectify potential discussion items as much as possible (claims, subsidies, stock valuation, bad debts, etc.)
- Identify and possibly already separate assets and liabilities not to be co-sold
- Clarify and manage historical and future working capital requirements
- Make an inventory of management wishes and objectives
- Optimising organisational structure and records
- Identify and substantiate commercial potential and/or saving opportunities and possible influence on the results. This may also include opportunities that cannot be exploited independently but can be exploited by a buyer
- Prepare and collect all required information (financial, legal, fiscal, AVG, personnel, commercial, market, etc.). Prepare this information for provision in the data room.