Initial OEM/Client Interaction > Expectations and Value Assessment
- Assess client growth potential and technological advantages
- Review 3-year historical financial performance
- Review 3-year financial forecast and assumptions
- Discuss client price expectations
- Review of buyers and likely valuation
Strategic Assessment and Grooming > Timing the Sale (If Necessary)
- Strengths, weaknesses, opportunities and threats (SWOT) analysis
- Develop detailed roadmap to increase valuation
- Grooming period initiated with regular client review of roadmap's key event execution
- Continual testing of likely valuation in light of anticipated financial performance and market conditions
- Regular contact with likely targets to keep abreast of their acquisition interests
- Continual feedback to client
Initiating the Sale Process > Positioning Client for Ideal Buyer
- Assess industry growth and competitive market share
- Evaluate competitor strengths and weaknesses
- Benchmark client's operating performance to competition
- Develop 3 to 5-year financial projections
- Prepare go-to-market materials emphasizing client's strengths and growth potential
(Typical lapsed time from Start of Exit Engagement - 20 to 30 days)
Going to Market > Identifying and Contacting Most Likely Buyers
- Identify prospective buyers
- Contact all client-approved prospects
- Secure confidentiality agreements and distribute marketing materials
- Conduct face-to-face meetings with high-potential buyers
- Constantly network with contacts to leave no stone unturned
- Secure written expressions of interest
(Typical lapsed time from Client Positioning - 30 to 60 days)
Conducting Competitive Bidding Process and Structuring the Deal > Agreement to Purchase Client's Business
- Review buyer proposals with client to select list of finalists
- Invite likely buyers to on-site visits during which the client's top management will make presentations
- Provide answers to buyer questions
- Solicit 'best and final offers' from prospective buyers
- Review with client the relative attractiveness of each offer
- Negotiate a term sheet stating price and key provisions with the buyer whose offer the client prefers
(Typical lapsed time from Expressions of Interest - 30 to 60 days)
Driving Documentation > Deal Closing
- Expedite buyer's due diligence investigation of client's company/establish data room
- Review and comment on buyer's draft Purchase and Sale Agreement
- Negotiate points needing to be resolved
- Review final Purchase and Sale Agreement
- Close
(Typical lapsed time from Selection of Buyer - 30 to 90 days)
