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🤝 '''Vendor assist report''' is a document prepared by an independent advisory firm — typically an accounting, actuarial, or consulting practice — on behalf of a seller in an insurance [[Definition:Mergers and acquisitions (M&A) | M&A]] transaction, designed to help the selling party present its business in a clear, organized, and analytically rigorous manner to prospective buyers. Unlike a full [[Definition:Vendor due diligence (VDD) | vendor due diligence report]], which aims to replicate the scope of a buy-side investigation, a vendor assist report is narrower in focus: it helps management teams assemble, verify, and present key financial, [[Definition:Actuarial analysis | actuarial]], and operational data so that the sale process runs more smoothly and buyer questions can be anticipated.

⚙️ In a typical insurance vendor assist engagement, the advisory firm works alongside the seller's management to organize [[Definition:Underwriting performance | underwriting performance]] data by [[Definition:Line of business | line of business]], prepare normalized [[Definition:Earnings | earnings]] analyses that strip out one-time items, reconcile [[Definition:Claims reserve | reserve]] positions with independent [[Definition:Actuarial analysis | actuarial]] estimates, and compile clean [[Definition:Bordereaux | bordereaux]] and [[Definition:Loss triangle | loss triangle]] data for buyer review. The report may also address known issues proactively — explaining, for instance, why a spike in the [[Definition:Loss ratio | loss ratio]] in a particular year was driven by a single [[Definition:Large loss | large loss]] event rather than systemic underwriting deterioration. For [[Definition:Managing general agent (MGA) | MGAs]] or [[Definition:Coverholder | coverholders]], vendor assist work often extends to documenting the terms and renewal outlook of [[Definition:Binding authority agreement | binding authority agreements]] and carrier relationships, which are central to the business's franchise value. The output is typically housed in a virtual data room and shared with shortlisted bidders during a structured auction process.

💡 Sellers who invest in a vendor assist report tend to experience faster deal timelines and fewer re-trades on price. By surfacing and contextualizing potential red flags before buyers discover them independently, the report reduces information asymmetry and builds credibility. This is particularly valuable in insurance transactions, where the complexity of [[Definition:Reserving | reserving]], [[Definition:Reinsurance | reinsurance]] structures, and [[Definition:Regulatory capital | regulatory capital]] calculations can otherwise lead to prolonged due diligence cycles and erosion of buyer confidence. While the report does not replace the buyer's own [[Definition:Due diligence | due diligence]], it sets the informational baseline and signals that the seller has subjected its financials and operations to professional scrutiny — a meaningful trust signal in a market where data quality can vary widely.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Vendor due diligence (VDD)]]
* [[Definition:Vendor due diligence report (VDD report)]]
* [[Definition:Vendor financial model]]
* [[Definition:Due diligence]]
* [[Definition:Mergers and acquisitions (M&A)]]
* [[Definition:Virtual data room]]
{{Div col end}}

Definition:Vendor assist report - Revision history

PlumBot: Bot: Creating new article from JSON