Sell-side transaction services
Sell-side (vendor initiated) due diligence (financial, tax and legal) procedures are initiated by seller as part of the disposal process of their subsidiary or business segment(s). The result of such due diligence procedures, the vendor due diligence report, is submitted by KPMG to selected bidders to satisfy their need for information and independent evaluation. Vendor due diligence (“VDD”) services may accelerate the disposal process, and can conserve valuable management time. There is also an opportunity to identify separation/disposal issues beyond the basic financial due diligence tasks. Moreover, sellers are aware of key risks and issues upfront which enables them to take mitigating steps and be better prepared when/if these issues are raised by bidders.
Evaluation of sell-side options comprises:
- Identification of potential disposal opportunities;
- Assist the seller in identifying upside options available to potential bidders that the seller has identified (e.g., areas of the business that may create synergy or operational improvement opportunities);
- Assist the seller in evaluating accounting and divestiture options (sale of assets or stock, all or part of the business, tax-free reorganization, joint venture or IPO/spin-off) and in understanding the accounting and tax impact the considered options.
Benefits of a sell-side due diligence may include:
- Presents bidders with an independent VDD report that meets their requirements;
- Maximizes the pool of bidders and allows for speedy execution of the transaction. The due diligence is available early in the sales process to facilitate rapid execution of the deal;
- Demonstrates the value of the target by presenting a robust but balanced view. We will also present key opportunities for growth, based on discussions with you;
- Raises issues early and provides you with control over the process. We will analyze and address areas of financial and commercial weakness likely to be challenged and work with you to assess any such weaknesses and remedies that might be implemented.
Capital markets – Regulatory reporting
This service relates to the capital markets, public offerings, raising debt or equity, and includes preparation of regulatory reporting in accordance with local stock exchange or other relevant authorities’ guidance/ requirements.
