The importance of efficient vendor due diligence and planning
With autumn now in full swing, deal activity is rising, spurred on not only by seasonal momentum but also by the familiar pre-Budget rush.
One of the clearest trends we’ve tracked over the past two years is the significant impact forward planning can have on both deal valuations and timetables. Our data shows that effective vendor due diligence can increase deal value by up to 30%, while cutting the execution window to around half the time compared to transactions where no early diligence is undertaken.
Why preparation matters
Late statutory filings, incomplete Companies House records, or untidy financial statements are red flags for potential buyers and investors. If accounts don’t reconcile, or if forecasts lack credibility, it raises doubts about the business’s growth story. Even relatively simple issues - such as undocumented share issuances or overlooked option agreements - can slow down a deal or reduce value.
Put simply, gaps in preparation often translate into delays, tougher negotiations, or valuation discounts.
Fix it early, save it later
The good news is that most of these pitfalls are entirely avoidable. By taking proactive steps to clean up statutory filings, reconcile financials, and ensure registers are up to date well before a transaction begins, business owners can eliminate unwelcome surprises.
As we often remind clients: it’s far cheaper to fix issues upfront than to negotiate discounts later when problems are discovered.
We’re here to help
Our UK and international Corporate Finance teams specialise in providing the right support at the right time. Whether through vendor due diligence, vendor assist, or broader transaction support, we help clients prepare their businesses for scrutiny, remove hidden risks, and streamline the process.
The last thing you want is a curveball emerging days before completion, buried deep in the paperwork. With proper preparation and quality advice, you can approach negotiations with confidence and ensure you secure the best possible outcome.
At Azets, our Corporate Finance advisory team supports a wide range of clients - from vendors and buyers to investors and funders - with rigorous due diligence. Get in touch with our specialist Corporate Finance team to discuss any transaction support.
