"Vendor Due Diligence” refers to the process of careful examination and analysis carried out by a potential buyer or investor. Its aim is to assess the financial, legal, operational, and commercial situation of a seller or business partner. VDD is usually carried out by companies that intend to acquire another company, merge with it, or enter into a strategic partnership.
Unlike traditional due diligence, which is often conducted by the seller to convince potential buyers, a VDD aims to achieve one result above all: to provide the potential buyer or investor with independent, comprehensive insights into the financial health, operational efficiency, legal compliance and other key aspects of the company to be acquired.