Explanation: Vendor Due Diligence (VDD)

"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.

back to last page

all glossary entries