When selling a company or a shareholding, the vendor's goal is an efficient process with as little disruption in business operations as possible. Vendors also generally want to field serious offers from as many candidates as possible to maximise their chance of success and drive up the price. SINCERIUS provides vendors with two types of vendor support in that process:
- Vendor assistance (VA): more focused due diligence on the vendor side, where we work together to decide how detailed our analysis will be and what research we will leave to the candidates themselves.
- Vendor due diligence (VDD): a relatively extensive, independent due diligence analysis conducted by the seller for potential buyers that the buyer can rely upon (reliance).
Both forms of vendor support increase the likelihood of multiple potential buyers making an informed offer and reduce the risk of price adjustments.
Vendor assistance (VA) is a custom due diligence analysis, tailored to the company and the vendor's needs, and helps to ensure a well-controlled sale:
- Part of VA is providing a consistent, like-for-like data set and a solid financial foundation to start the sales process.
- The seller is in control: any negative aspects are identified early on and flagged where appropriate and strengths are highlighted.
- Potential buyers spend more time working through the sales process: VA grants exclusivity to a prospective buyer at a later stage.
- With VA, buyers will need to conduct additional research, but the solid foundation VA provides helps to limit the scope of that research and reduce the burden on the company.
We take an active role, working with you to plan the sales process as efficiently as possible and achieve the best results. Our years of transaction experience mean that we know what potential buyers are looking for and how they approach a transaction. Our research provides invaluable input for the sales strategy.
This independent due diligence analysis is the industry standard. VDD is conducted on behalf of the seller, but tailored to the needs of potential buyers. The seller bears the cost of the process, but also reaps the benefits:
- VDD paints an independent picture of the company that interested buyers can rely upon. That increases the likelihood of serious offers from multiple potential buyers.
- The seller retains control of the sales process. VDD includes a comprehensive survey of the company and identifies key points for attention, both positive and negative. This reduces the risk of negative price adjustments later on in the process.
- As with VA, exclusivity can be granted to a prospective buyer at a later date.
- VDD saves a significant amount of time. The seller only has to go through one single, thorough investigation, which keeps business disruption to a minimum.
VDD also limits the risks of possible price adjustments far more than VA, because VDD is more comprehensive in both the topics it covers and the depth of analysis. As an independent analyst, we cannot provide as much support for the seller in compiling consistent data during a VDD analysis.
Our analysis and years of transaction experience provide important input for the sales strategy. The main objectives of our analysis:
- Provide insight into the company's key value drivers.
- Provide insight into historical financial information, interim financial developments, and financial expectations for the future.
- Identify negotiation points and deal breakers to build a strong negotiating position with a solid narrative.
Business intelligence (BI) helps us create transparency in the available data, which is why it is a standard part of our financial due diligence analyses. BI also helps to lighten management's load during the project. BI means fewer questions, which leaves management free to concentrate on the business.
The SINCERIUS BI tool gives you fully automated insight into the business. The final buyer can implement our BI tool and make full use of the vendor support insights. BI provides real-time insight into KPIs and access to reports and analyses on one platform with a single click.
Numbers are never just numbers: the seller's industry, future expectations, and other factors play a role, as well. With our specialist expertise and years of transaction experience, we help sellers and companies come into the sales process fully prepared.
Our approach? Clear advice in a practical, professional, and transparent way – so the seller can take and keep the lead in the sales process.