THE PROCESS

THE BUYING PROCESS

Expressing interest

  • Respond to teaser document
  • Exchange information including I.M. (information memorandum) and accounts and submit any questions to seller
  • Answer any seller questions and qualify funding/interest

Meeting the company

  • Arrange and attend an initial meeting
  • Introduce senior management and key staff
  • Formulate and submit a letter of intent / non-binding offer
    / heads of terms

Offer finalisation

  • Review financials / pre-due diligence and detailed
    information requests
  • Agreeing a valuation in principle; additional meetings
    if necessary
  • Heads of terms submitted

Deal completion

  • Due diligence
  • Contract writing / solicitors; purchase agreement
  • TUPE (Transfer of Undertakings (Protection of Employment)) transfer of employment contracts and other operational tasks
  • Completion and exchange of funds

We represent the seller throughout and this provides a great deal of assistance in keeping everything on track. The steps shown form a framework which maintains focus during key stages, from initial meetings to purchase agreements. Due to the complexity and the plethora of potential hurdles with any deal, a firm set of steps is imperative to ensuring success. This process gives us an increased level of experience as we see more and more deals follow these steps. Being able to predict and manage the potential issues is imperative.

THE SELLING PROCESS

Desktop review

  • Obtain information about your business including accounts
  • Arrange an initial, exploratory meeting to discuss all aspects of what you are trying to achieve with your exit strategy
    and how best to proceed
  • Provide an approximate valuation range and agree on how
    to conduct the sale and terms of business

Marketing the opportunity

  • Prepare marketing material including a teaser and an I.M.
  • Market the opportunity to our current buyers and contacts
  • Market the opportunity to a wider audience via online, print and telephone campaigns
  • Collate a shortlist of interested parties for review and approval

Buyer meetings

  • We usually get between twenty and fifty initial expressions of interest and we recommend that this be narrowed down to approximately ten buyers with whom to meet
  • Arrange a first meeting with the buyer to introduce both companies and meet with
    the senior management team(s)
  • Additional information requested

Offer submission

  • Letter of intent (first or indication offer) submitted
  • Additional meetings if necessary
  • Negotiation of offer structure including valuation,
    payment terms and earn out
  • Heads of terms

Deal completion

  • Due diligence
  • Contract writing / solicitors – purchase agreement
  • TUPE transfer of employment contracts
  • Completion and exchange of funds