Walk me through an M&A deal on the sell-side.

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