First Round
- Identify potential buyers
- Reach out to gauge interest with teaser; send CA (confidential agreement) and provide CIM (confidential information memorandum) and basic financial projections
- Recieve letter of intent (LOI)s with preliminary offer from bidders
Second Round
- Select bidders to pass the first round
- Provide buyers with access to data room, including monthly financials, key company files, contracts, market analysis, product / service details, etc.
- Arrange site visit, management meetings, answer due diligence questionsReceive updated offers with SPAs (sales and purchase agreement) which are legally binding offers
Third Round
- Select exclusive buyer so they can spend on third party due diligence (DD) without risking being overtaken by another buyer
- Third party DD includes: accounting, legal, tax, accounting, quality of earnings, environmental, management, background checks, consulting / market research, etc.
- Close transaction, send wire transfer