Business case of a vendor due diligence project

Business case of a vendor due diligence project in the Netherlands in the food industry

The company is active in the food business in the Netherlands
The acquisition target is a company active in Food
The activity is vendor due diligence (VDD)
The vendor due diligence concerned a company with a revenue of more than 500m Euro.
CFIE Vendor due diligence (VDD) input: The CFIE team supported in the vendor due diligence on behalf of the Private Equity owner of the Food company

Overview vendor due diligence project food industry

Here you find a description of a vendor due diligence project in the Netherlands in the food industry. The seller is a Private Equity firm active with a portfolio company in the food industry. The CFIE VDD (Vendor due diligence) team helped the seller in the preparation of a Vendor due diligence report. Find more details on the vendor due diligence project below.

Strategy seller (owner food company)

The strategy of the owner of the food company was to sell the company at a high price after many years of ownership. The Private Equity Group had owned the food company and planned on selling the company. When the time was ready to sell they decided to have a Vendor Due Diligence exercise being realised by external advisors. The objective was to ensure the business sale would be a smooth process with an interesting sales price. The buyers targeted were strategic buyers from the Food industry.

Activities of the CFIE vendor due diligence (VDD) team

The CFIE vendor due diligence team is active in Vendor Due Diligence projects and also works on Buy Side Due Diligence. For this Vendor due diligence project our people worked for a respected party in the Food Sector. The party had a turnover of more than € 500m and was owned by a private equity fund. The CFIE team implemented a Vendor Due Diligence assignment with the objective to realize a smooth business sale process. The Vendor Due Diligence consisted of analysing the different business units and their stand-alone performance. Further, activities consisted of the mapping of value drivers to show the real causes of profitability. One-off results were identified to get a clear view on true operational profit. A detailed analysis of the working capital requirements and the normal level of working capital was done. All required future investments and the historic investment levels were described . The final report was made available to potential buyers to give openness and clear insight in the real performance of the company. This ensures confidence between a seller and a buyer and helps in a smooth transition of the business to a new owner.

Highlights of the vendor due diligence project in the Netherlands in the Food industry

Describe all value drivers to give true insight in the operational performance of the company
Detailed analysis of the working capital and investment requirements
The seller has a strong position in the food industry. By having a Vendor Due Diligence report done the sales process continues more smoothly
Often a higher sales price can be realized when a VDD report is available (due to the independent insight in the operational performance and the transparency in the process)

Information about Vendor Due Diligence projects across Europe

Feel free to contact us for further details about this vendor due diligence (VDD) projects in the Netherlands in the food industry. If you want to learn more about VDD please check the section on vendor due diligence. Feel free to reach out to us to get 30 minutes advice about the suitability of a vendor due diligence project for your business sale and how best to approach this.