--- title: What is 'vendor due diligence'? [checklist] description: Use the free JPAbusiness Vendor Due Diligence Checklist to help prepare your business for a successful sale process. image: https://blog.jpabusiness.com.au/hubfs/1.%20Images/1.%20Stock%20Images/jared-sluyter-342881.jpg --- 16 August 2022 # What is 'vendor due diligence'? [checklist] WRITTEN BYJames Price | JPAbusiness ![jared-sluyter-342881](https://blog.jpabusiness.com.au/hs-fs/hubfs/1.%20Images/1.%20Stock%20Images/jared-sluyter-342881.jpg?width=588&name=jared-sluyter-342881.jpg) When business owners come to see us, wanting to sell their business, we often get involved in providing what we term ‘**vendor due diligence’**. When conducting vendor due diligence for clients, **our role is basically to ‘pretend’ we are the buyer. ** We look at a range of business health factors including:[![Vendor due diligence checklist cover](https://blog.jpabusiness.com.au/hs-fs/hubfs/1.%20Images/4.%20Document%20cover%20images/Checklist%20and%20template%20covers/Vendor%20due%20diligence%20checklist%20cover.png?width=250&height=306&name=Vendor%20due%20diligence%20checklist%20cover.png)](https://landing.jpabusiness.com.au/vendor-due-diligence-checklist-download) - **financial **performance - **business **performance - **staff **and organisational aspects - **contracts, systems and suppliers** - how the business creates and drives value in terms of its **point of difference** in the market - **forward order book** i.e. the pipeline, to understand the true nature of the business as a going concern - how **exposed** the business might be to individuals or particular customers or suppliers. These are all things we have talked about in our [Due Diligence Checklist for business buyers.](https://landing.jpabusiness.com.au/due-diligence-checklist) The [Vendor Due Diligence Checklist ](https://landing.jpabusiness.com.au/vendor-due-diligence-checklist-download)is similar, but it’s coming from a different angle. It’s about doing preparation to make sure that when a purchaser ‘opens the bonnet’ on your business, they’re able to easily see how the business is performing. ### Vendor due diligence critical component of business sale preparation We created the free **Vendor Due Diligence Checklist** as part of our ebook: **[How to Prepare Your Business for Sale.](https://landing.jpabusiness.com.au/how-to-prepare-your-business-for-sale-ebook)** If you are a vendor looking to maximise value from your sale, it's important to do the preparation early, so the transaction process can be as streamlined and effective as possible. Conducting vendor due diligence with an independent advisor’s support will ensure **critical information about your business opportunity is** **gathered, collated and clearly presented** long before purchasers come knocking. [![New Call-to-action](https://hubspot-no-cache-ap1-prod.s3.amazonaws.com/cta/default/2108706/aa279ae2-1c87-40d8-a91e-894b09806e1b.png)](https://hubspot-cta-redirect-ap1-prod.s3.amazonaws.com/cta/redirect/2108706/aa279ae2-1c87-40d8-a91e-894b09806e1b) JPAbusiness offers a wide range of services for business buyers and sellers. If you are considering buying or selling a business, [contact ](https://landing.jpabusiness.com.au/contactus)the business advisory team on **02 6360 0360** for a confidential, initial discussion. Share this Article Share this blog post on Twitter [mailto:?subject=Share%20this%20blog%20post&body=https://blog.jpabusiness.com.au/blog/what-is-vendor-due-diligence-checklist](mailto:?subject=Share%20this%20blog%20post&body=https://blog.jpabusiness.com.au/blog/what-is-vendor-due-diligence-checklist) Copied to clipboard Topics - [selling your business ](https://blog.jpabusiness.com.au/blog/topic/selling-your-business) - [template ](https://blog.jpabusiness.com.au/blog/topic/template) - [checklist ](https://blog.jpabusiness.com.au/blog/topic/checklist) - [selling a business ](https://blog.jpabusiness.com.au/blog/topic/selling-a-business) - [vendor due diligence ](https://blog.jpabusiness.com.au/blog/topic/vendor-due-diligence) About James Price | JPAbusiness James Price has over 30 years’ experience in providing strategic, commercial and valuation advice to Australian and international business clients. James’ blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers. #### Related Blog Posts ### [Why you need to provide good information when selling your business](https://blog.jpabusiness.com.au/blog/why-you-need-to-provide-good-information-when-selling-your-business) At JPAbusiness we know that professional, credible information is key to a successful business... [Read more ](https://blog.jpabusiness.com.au/blog/why-you-need-to-provide-good-information-when-selling-your-business) ### [How NOT to manage a business ownership transfer](https://blog.jpabusiness.com.au/blog/how-not-to-manage-a-business-ownership-transfer) Value can be destroyed overnight if a business sale transfer goes wrong. A few years back we... [Read more ](https://blog.jpabusiness.com.au/blog/how-not-to-manage-a-business-ownership-transfer) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "James Price | JPAbusiness", "url" : "https://blog.jpabusiness.com.au/blog/author/james-price-jpabusiness" }, "dateModified" : "2023-07-17T01:08:34.337Z", "datePublished" : "2022-08-16T20:00:00.000Z", "headline" : "What is 'vendor due diligence'? [checklist]", "image" : [ "https://blog.jpabusiness.com.au/hubfs/1.%20Images/1.%20Stock%20Images/jared-sluyter-342881.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.jpabusiness.com.au/blog/what-is-vendor-due-diligence-checklist", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.jpabusiness.com.au/hubfs/JPAbusiness-logo.svg" }, "name" : "JPAbusiness Pty Ltd" } } ```