M&A Foundations · glossary
Due diligence commissioned by the seller on its own business, with the report shared with bidders — who are usually allowed to rely on it. It speeds up auctions, reduces duplicated cost, and lets the seller find (and fix) its own skeletons first. Chapter 5
Explained in Chapter 5, Preparing for a Deal, of M&A Foundations.
Also explained in Legal Due Diligence.
Sellers running auctions often commission vendor due diligence (VDD): a due diligence report on their own target, prepared by independent advisers and shared with all bidders. The report typically comes with legal responsibility — "reliance" — to the eventual buyer. One report read by five bidders is faster and cheaper than five parallel investigations, and it keeps the seller in control of the story. Chapter 5 covers sell-side preparation; Chapter 7 covers due diligence…Read Chapter 3, Deal Types and Structures →
Every chapter of M&A Foundations is free to read, including the full training share purchase agreement.
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