Pre-Sale Diligence and Strategic Analysis

We start each assignment by analyzing our client’s business. To identify the company’s core value drivers, we will study its operations, products and services, markets, challenges, competitive advantages, and many other features. The upfront diligence will help us understand the investment thesis from a buyer’s lens and solidify our valuation expectations.

Develop Effective Marketing Strategy

Once we understand the seller’s objectives and priorities, and the value of the business, we will develop a comprehensive buyer list and craft a strategy for entering the marketplace. A broad auction, limited auction, and a targeted process are all common approaches for a sale process.

Confidential Information Memorandum

We prepare an in-depth and professionally crafted Confidential Information Memorandum (“CIM”) detailing the business’s history, value proposition, financial review and projections, growth strategy, operations, industry, and other information useful to prospective buyers.

Present the Opportunity to Buyers

Initially, we contact prospective buyers and explain the opportunity and process at a high level. That is followed by more in-depth discussions and the delivery of the CIM after the execution of a non-disclosure agreement.

Receive and Analyze Offers

The first round of offers comes in the form of a non-binding indication of interest (“IOI”), which is submitted by a set date shortly after all parties have reviewed the CIM. If the offers are acceptable to our client, we will open up the data room so a letter of intent (“LOI”) can be formulated and submitted.

Due diligence, Documentation, and Negotiations

Once our client has accepted an LOI, we will grant the buyer access to the data room and begin working with deal attorneys to document the transaction. Even after pricing and basic deal terms are agreed upon at the LOI stage, a significant amount of work remains to capture as much value as possible through negotiating favorable deal terms and structuring for the seller. We maintain control of this phase of the process and keep pressure on the buyer to close quickly without sacrificing value.

Closing

Once the buyer and seller have reached an agreement on the transaction documents and closing conditions have been met, we will coordinate the deal’s closing.

Selling a business is a very complex and time-intensive process that is also a significant event for a business owner to undertake. We understand the emotional burden and impact on management and employees of the business. Our process and methods help alleviate the disruption for our clients and their businesses.