M&A PROCESS & TIMETABLE

Phase 5 Closing

Phase 4 Negotiations

Phase 3 Meetings

Phase 2 Potential Buyers

Phase 1 Strategy

0 5 10 15 20 25 30
Number of Weeks

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M&A PROCESS & TIMETABLE – SELL SIDE TRANSACTION

Approximate
Description Timing Responsibility
Strategic Planning & Preparation of Materials 3 – 4 weeks ADV, TAR
Define strategy and focus on sale process
Prepare Offering Memorandum (OM)
Complete valuation analysis
Preliminary Buyer's List
Preliminary Contact and Communication with Potential Buyers 2 – 4 weeks
Send preliminary information to buyers ADV
Negotiate Confidentiality Agreements ADV, Legal
Distribute Offering Memorandum ADV
Arrange initial meetings with potential buyers ADV, PB
Preliminary information requests and due diligence ADV, TAR, PB
Management Meetings and Presentations 2 – 6 weeks ADV, TAR, PB
Preliminary Negotiations 4 weeks
Follow-up information requests and additional due diligence ADV, TAR, PB
Indications of Interest (IOI) and Letters of Intent (LOI) received PB
Evaluate and negotiate termsheets ADV, TAR
Selection of final buyer ADV, TAR
Final Negotiations and Closing 4 – 8 weeks
Final Due Diligence ADV, TAR, Legal, PB
Prepare and negotiate Definitive Agreement ADV, TAR, Legal, PB
Regulatory Filings TAR, PB, Legal
Closing / Announcement ADV, TAR, Legal, PB
TAR: TARGET
ADV: ADVISOR
Legal: Legal
PB: Potential Buyers

WALL ST Providing financial training to Wall Street

www.wallst-training.com
® © Hamilton Lin, CFA
hamilton@hlcp.net
TRAINING