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Article: Vendor initiated due diligence: vendor initiated due diligence is a powerful tool that Irish companies are increasingly using. Craig Bale describes what it involves.
- Article from:
- Accountancy Ireland
- Article date:
- August 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Institute of Chartered Accountants in Ireland. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The objective of the traditional disposal process is for the vendor to maintain control of the process thereby minimising value erosion and ultimately maximising the potential return, whilst minimising the disruption to the business. However, this objective is rarely fully achieved.
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To overcome this shortfall, a powerful tool becoming increasingly popular in the Irish market is vendor initiated due diligence.
Confirmatory vs vendor initiated due diligence
When due diligence is mentioned, the majority of people associate this with confirmatory due diligence performed by an acquirer on a potential target. ...