What might a seller include in a vendor due diligence report?

A vendor due diligence report is a comprehensive document prepared by the seller to provide potential buyers with crucial information about the business. This report is aimed at streamlining the sale process by addressing areas of concern that buyers may have.

Including strategic goals for the upcoming year helps buyers understand the direction in which the company is headed and its long-term vision. This information can impact the perceived value of the business and its potential for growth.

Employee compensation structures are also critical, as they provide insight into the organization’s financial commitments and how it values and retains its talent. This information can affect a buyer's assessment of operational efficiency and organizational culture.

Moreover, marketing and sales projections offer prospective buyers a glimpse into the company's revenue potential and growth strategies. Understanding these projections helps buyers make informed decisions regarding the sustainability and scalability of the business.

By encompassing all of these elements, a vendor due diligence report provides a well-rounded overview of the business, ultimately facilitating a smoother transaction process. Therefore, the inclusion of strategic goals, compensation structures, and projections in the report reflects a thorough and strategic approach to vendor due diligence.