CAMBRIDGE will manage every aspect of the sales process, which ususally consists of the following main steps.
Throughout the entire process, we will communicate with you clearly and frequently on progress, potential concerns, upcoming decisions, etc. Issues may arise at any stage that will require additional time and attention to ensure full value is achieved.
- Pre-sale Planning
In preparing the business for due diligence and for sale we will help you identify and resolve potential issues that may arise during the process or may be dealt with now to enhance value. Some examples include environmental issues, intellectual property deficiencies, litigation and disputes, sale of peripheral assets, renewal or extension of valuable contracts, sale or closure of non-core business units, and back-office housekeeping.
- Prepare Confidential Information Memorandum
We will prepare the Confidential Information Memorandum, which is the main marketing document setting out key information on the business.
- Identify potential purchasers
We will identify an initial target list of potential acquirers. We will assess which strategic buyers are likely to be particularly motivated to buy your company or prevent a competitor from owning it. We will assess the likely acquisition fit, financial capacity and closing reputation of each potential strategic and financial buyer. The target list will be screened in consultation with you.
- Confidentiality and Disclosure
We will make an initial approach to selected potential acquirers on a confidential basis without disclosing the name of your company. After a Confidentiality Agreement has been signed the name of the company and the Confidential Information Memorandum be provided.
- Meetings with potential buyers
We will help you prepare a brief presentation for prospective buyers. We will arrange and attend meetings with potential acquirers and respond to questions they have about the company.
- Control negotiations
We will apply our experience to establish and manage a timetable to control timing of buyers’ offers, ensure that you can compare offers and let the buyers know that they are in a disciplined competitive process.
- Indicative Offers
In addition to price, we will ask the purchaser to provide details of funding, timetable, due diligence requirements and plans for the business. We will assess and advise you on the effective value and risk of each offer and help you select a short list consisting of at least your preferred bidder and one or more standby purchasers to maintain competitive tension.
- Initial Due Diligence
Short-listed buyers will be permitted to conduct preliminary due diligence in a process that we will carefully control to protect the company and its business.
- Final offers & Negotiations
We will meet with the short-listed purchasers, review their offers and due diligence findings, and negotiate stronger terms. Buyers will often enhance their offers in order to stay in the running and in order to be selected as the preferred purchaser.
- Final Due Diligence & Negotiations
The selected buyer will be given an exclusive opportunity for a very limited time to conclude its final due diligence and settle a definitive agreement for the transaction. During this time, a standby buyer will be maintained in background reserve to strengthen your negotiating position and prevent the selected buyer from grinding the price or terms.
- Closing the deal
To successfully close the deal we need to actively manage the process through to completion, working alongside you, the buyers and lawyers to resolve any agreed conditions and negotiate the inevitable late issues.
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"We know that selling your business is likely the largest and most important transaction you will ever undertake, that emotional as well as financial factors are relevant, and that the ultimate result will be a key measure of your success in business. One of our partners will personally be your key contact, attend every meeting, conduct key buyer approaches and negotiations, and coordinate the efforts of the Cambridge team and your other advisors. "
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