The Use of VDD in Small-Cap Stocks

By Alban Cabanis, published in CFNEWS on November 11, 2025.

First appearing in the early 2000s, financial vendor due diligence (VDD) quickly became standard practice in large- and upper-mid-cap transactions. Its benefits in the divestiture process (especially when it is competitive) are well known: structured and transparent financial information, the ability to anticipate potential difficulties, and a streamlined due diligence process that allows preselected investors to position themselves quickly.