Vendor Due Diligence (VDD)
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Definition
Sell-side diligence package prepared by the seller's advisors to accelerate buyer review and broaden the bidder pool.
Vendor Due Diligence (VDD) in plain English
Vendor Due Diligence (VDD) is when the SELLER of a company hires accountants and advisors to thoroughly inspect their own business BEFORE putting it up for sale, then hands that report to potential buyers. Normally each buyer does their own deep investigation ("due diligence") to make sure the company is as good as claimed — but that's slow and expensive, so if the seller does a credible inspection up front, more buyers can quickly get comfortable and bid. It's like getting a pre-sale inspection done on your used car and showing every shopper the clean report — it speeds up the sale and attracts more interested buyers. ("Vendor" here just means the seller.)
Also called: VDD
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