Käufer-Due-Dillegence – Verkäufer-Due-Dillegence

Seller due diligence and buyer due diligence are two different types of company due diligence that are carried out as part of the sale of a company.

Seller due diligence is a review carried out by the seller at an advanced stage of negotiations before the purchase agreement is signed. It serves to provide the buyer with specific documents to validate financial, legal and tax issues. The buyer can analyse the company in detail and review information already received. An on-site visit is often a component of seller due diligence, focussing on fixed assets, inventory and internal company processes. The primary aim of seller due diligence is to ensure that the buyer can minimise their risk and make a final statement on the purchase price by obtaining detailed information.

Buyer due diligence, on the other hand, is usually carried out by the buyer. It serves the buyer to validate financial, legal and tax issues. To this end, the buyer requests specific documents from the seller in order to analyse the company in detail and verify information already received. In addition, an on-site visit is often part of a buyer due diligence, whereby the focus here is certainly also on the fixed assets and the warehouse and internal company processes can be analysed.

The main differences between a seller due diligence and a buyer due diligence lie in who commissions the audit and who carries out the audit. In seller due diligence, the seller commissions the due diligence, whereas in buyer due diligence, the buyer commissions the due diligence. However, both types of due diligence serve the same purpose, namely the validation of financial, legal and tax issues in order to minimise risk and determine the purchase price.

The due diligence process can vary depending on the specific requirements and objectives of the parties. In general, however, it involves reviewing various aspects of the business, including

The results of the due diligence can help the parties to understand the strengths and weaknesses of the company and to assess possible risks and opportunities. Based on this information, the parties can make an informed decision as to whether the purchase or sale of the company is a good investment or decision.

Please note that due diligence is a complex process and the assistance of a specialist is recommended to ensure that all relevant aspects are adequately considered