In a company there can be multiple potential cases that can trigger a corporate sale – for instance: the arrangement of corporate succession, the focus on core competencies or capital requirements. In those cases a company sale can be perfectly reasonable. Due to these differences every sales process is unique – like your business.
CD Invest assists the seller in all major steps of the sales process – whether it is a total or partial sale. The service spectrum includes the creation of company documentation (e.g. information memorandum), research of potential buyers (strategic investors, financial investors, etc.), screening and contacting of potential buyers (long list, short list), the analysis of Letters of Intent (LOI) – which include the first indicative purchase price of the prospects, preparation and coordination of the due diligence process, detailed examination of all corporate data, request for a binding offer and the final negotiations.
Three factors are essential for a successful transaction: first of all the continuity in the sales process, meaning the monitoring of the process by a single partner from the beginning of the transaction until the signing and closing of the deal. Secondly the identification with the goals of the owner/client and thirdly the entrepreneurial thinking and proceeding of the M&A advisor.
- Preparation: definition of goals & objectives, sales strategy, market research & creation of a long list with potential buyers, creation of corporate documentation (teaser, information memorandum, NDA, confidentiality agreement), calculation of a purchase price indication, identification of dealbreakers
- Marketing: telephone calls with potential buyers, confirmation of interest, collection of signed confidentiality agreements, distribution of an information memorandum and a procedure letter, evaluation of alternative opportunities, creation of a short list, obtaining indicative offers (non-binding Letters of Intent “LOI”)
- Due diligence (DD) and negotiation: management presentation, development of a data room request list, realization of the data room, coordination of the DD teams, transaction structuring, coordination of the Q&A sessions, identification of unclear issues, Red Flags and No-Gos, evaluation of dealbreakers, draft sales and purchase agreement
- Finalization: collection of binding bids/offers, coordination and management of negotiations, contract signing, ,red-file’ due diligence, regulatory clearance, closing