In this month’s Finance Matters, Hemal​​​​Pandit, Director ‑ Corporate Finance at Saffery, discusses vendor assistance for business transactions.

We also get to meet Tax Services Group, Data administration co-ordinator, Adele Sava and learn of her love of reading, nature and photography.

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Selling your business or attracting investment can be a daunting task, often consuming valuable time and causing considerable stress. However, proper preparation and vendor assistance can help to ease the burden.

Vendor assistance vs vendor due diligence

Vendor due diligence

Vendor due diligence is a process in which the seller commissions thorough investigation of their own business in advance of, or in replacement of, interested parties being invited to conduct their own due diligence.

This includes a comprehensive review of the financial and tax affairs of the business, or part of a business.

The primary aim is to identify and address any potential issues that buyers might find during their own due diligence, in order to provide the sellers with the opportunity to understand and, where possible, mitigate these issues.

Vendor assistance

In contrast, vendor assistance focuses more on supporting the seller ahead of and during a transaction process.

This can include reviewing offers or heads of terms, valuation services to provide indicative and insightful valuations of the business, preparation of financial information ahead of due diligence, data room management, information request handling and other related services to ensure a smoother transaction process.

While vendor due diligence is primarily about presenting a comprehensive view of the financial position and tax compliance of the business, vendor assistance encompasses a broader range of services to support and enhance the overall transaction outcome for sellers.

Vendor assistance services cover a broad spectrum, ranging from comprehensive dry runs of the due diligence process to focused examinations of specific business aspects and everything in between.

Ultimately, the goal of engaging in vendor assistance services is to optimise the valuation of your business. By ironing out potential issues that could diminish value or delay the sale process, you can gain greater control over the transaction outcome.

Benefits of vendor assistance

Vendor assistance services yield maximum benefits when initiated before starting the transaction process. While value can still be added during the process, being prepared in advance also ensures foresight for potential hurdles.

The expertise and guidance provided by vendor assistance advisers can be invaluable, often resulting in benefits throughout the transaction process. Here are some of the key benefits:

• Increased transaction efficiency: early preparation and organisation streamlines the transaction process, reducing delays and avoiding last-minute surprises,
• Enhanced business valuation: addressing potential issues and presenting a well-prepared business can significantly enhance its perceived value,
• Risk mitigation: identifying and managing risks beforehand can prevent deal-breaking problems,
• Improved buyer confidence: providing a transparent and thorough view of your business fosters trust and confidence among potential buyers, and
• Resource optimisation: professional assistance allows you to maintain focus on core business operations while preparing for the transaction.

By getting professional help at the right time, you can significantly increase efficiency, reduce strain on internal resources, and maintain focus on the core operational activities that drive value for your business.

Areas to consider

Before utilising vendor assistance services, you should always fully consider your business’ position and if it’s the appropriate time to seek this type of advice. Some of the key areas to consider are:

• Potential conflicts of interest: ensure that the advice received is unbiased and in the best interest of your business,
• Cost-benefit analysis: weigh up the costs of vendor assistance against the potential benefits and value added to the transaction,
• Timing of assistance: consider the timing of engaging vendor assistance to maximise its effectiveness and value, and
• Impact on business operations: assess how the preparation process might impact your day-to-day operations and whether you have the capacity to manage it alongside regular business activities.

How we can help

We know that the due diligence process can be complex, but our specialist team can make reliable recommendations and turn advice into action.

We have extensive experience of supporting our clients in preparing their businesses (or parts of businesses) for sale through vendor assistance in addition to a wide variety of transaction support services.

Take a look at some of our case studies to see how we’ve supported businesses throughout the transaction process.

To find out how we can help you and your business, please get in touch with Hemal​​​​ Pandit, Director ‑ Corporate Finance

E: [email protected]

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Name: Adele Sava

Role: Tax Services Group – Data administration co-ordinator

Time at Saffery: 2 years, 4 months

What’s the best bit about your job?

My team; It brings me huge satisfaction to train and coach them, help them understand a process and build the confidence they need to independently deal with a work request (especially more complex ones).

I love being here with them every day; they are a funny, positive, hardworking bunch and probably the best team I have ever got to work with. We are a close-knit group, and we enjoy our little banter sometimes; makes the hard days easier and the time go quicker.

Also, the diversity of work; I like a good challenge and having new things to learn. I could definitely say that things never get boring as we have a wide variety of work requests and processes that we are dealing with.

The culture of Saffery is really important to the business and the people within it – what do you think you bring to the team and what do you contribute?

As a team, we have a main mutual goal: To deliver outstanding client service. I consider that we are contributing a great deal to this goal by supporting our Tax Services Group in everything they do.

We are not perfect but strive for excellence and we take pride in being efficient, open minded and having the ability to easily adapt to change, different circumstances and work requests.

If you weren’t doing this role, what might you be doing?

It would definitely be something creative.

I would love to have a ‘Flowers, gifts and book shop’ and make my own candles, soaps and skin care products; having my own brand.

I’m not sure how profitable that would be but that’s what I sometimes daydream about.

I’d also like to write a book.

What do you enjoy doing outside of work?

Being still. It allows me to recentre, catch my breath and focus on what’s happening internally and around me.

Having a SPA Day at home & listening to some lounge music, spending time in nature, cooking & reading, painting (even though I’m not amazing at it) and photography.

Tell us something about yourself that we don’t know

I don’t like rain. Haha. This is something that everyone probably knows as I never miss any chance to complain about it!  ‘Living in the wrong place’ many would say…

I love my candles and a good book on a rainy day though.

I have been published by a Society and Culture magazine, and a Literary Art website back in Romania; I wrote a few articles for Catchy and Bel Esprit and is one of the achievements that I’m most proud of.

Who or what inspires you?

Nature. On many levels and with my photography in particular. It makes me feel very creative.

And I guess just people in general. There are people I work with and people in my life that both admire and inspire me.

Funny people, colleagues that make you laugh, anyone with a good vibe.

People that care, people fighting for a good cause or standing up against any injustice. People with empathy and common sense; people who keep their promises; Those that are brave enough to say: “I was wrong” and “I apologise”.

What’s your favourite place in Dorset?

Isle of Portland and Mudeford Spit

Give 3 words to describe yourself

Clumsy, hardworking, reliable