Buy-side Advisory Process

Timeline: Week 1-2

Agreement on the market capitalization/valuation of the existing business that is intending to do the acquisitions, foundation to determine which acquisitions might meet the return hurdle the shareholders  require to justify an acquisition.

Timeline: Weeks 1-4

Develop a solid documented acquisition plan outlining why the business should make acquisitions, and what the desired outcomes are, articulate the M&A criteria in a Tear Sheet setting out the specifics such as company value, industry, geography, revenue, margins, growth, employees, etc.

Timeline: Weeks 1-6

Use the above criteria to curate and identify an addressable market of potential acquisition candidates and respond to in-bound interest or Teasers from sell-side intermediaries.

Timeline: Weeks 1-8

This phase involves reaching out to selected companies that meet the criteria and commencing a dialogue with target organizations management.

Timeline: Weeks 1-14

Once preliminary discussions have taken place a target company will provide detailed financial information which can be used to value the company in more detail.

Timeline: Weeks 1-28

After a view on valuation has been established an offer can be made and negotiations will go back and forth

Timeline: Weeks 1-29

Board of directors or investment committee of acquiring company decides to proceed (subject to final approval)

Timeline: Weeks 1-40

Upon successful completion of due diligence, the final purchase and sale agreement can be signed (share purchase or asset purchase)

Timeline: Weeks 1-40

This may have commenced and occurred earlier, but the final strokes of financing will come into place after the deal has been signed but before it closes.

Timeline: Weeks 1-40

Closing and integration of the acquisition – Finally, the official transaction closes (tombstones are handed out) and the lengthy process of integration begins.