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Vendor-Initiated Commercial Due Diligence

by ed — last modified 2008-09-01 08:49

If a commercial due diligence is initiated by the current owners of a company being sold, the investors and their specific interests are not known initially. In this case, Androschin & Partner Transaction Services compile a vendor due diligence report, which is made available to potential buyers at the end of the process as a source of information on the company.


The vendor benefits in many respects from commissioning this kind of commercial due diligence:
  • The report simplifies the contract negotiations and speeds up the sale process.
  • The vendor has greater control over the sale process.
  • The vendor is made aware at an early stage of any potential problems and risks in the company that could create difficulties in the sale process, and can prepare for them accordingly.
  • Price reductions, frequently demanded in respect of information risks, can be minimised or even avoided completely.
  • When numerous potential buyers are contacted and the prospects of success are thus relatively small for each one individually, many baulk at the information costs and do not take part in the process at all. The detailed report gives them an additional incentive, increasing the vendor's chances of reaching a wider circle of bidders.



Androschin & Partner accomplished Commercial Due Diligence for Deutsche Beteiligungs AG

Deutsche Beteiligungs AG acquires Romaco group

Management buyout of manufacturer of packaging and food processing equipment

Frankfurt am Main, 31 March 2011. Deutsche Beteiligungs AG (DBAG) and its managed closed-end private equity fund DBAG Fund V announced today that they will acquire the Romaco group (“Romaco”) in a management buyout. DBAG and seller Robbins & Myers Inc., a NYSE listed company headquartered in Dayton, Ohio, USA, signed a contract to that effect. The purchase price for the company is 61 million euros. DBAG will invest some eight million euros from its balance sheet and hold a 19 percent interest in Romaco. DBAG Fund V and Romaco’s management will acquire the remaining shares.

press release