HIRING AN INVESTMENT BANK
Sellers should know the key steps an investment bank (IB) will conduct in a sale process.
- Develop a Teaser – Investment bank and seller should collaborate to develop an initial summary (teaser) of key seller attributes and issues.
- Determine Best Buyers – Seller and IB will prepare a list of the best possible buyers.
- Review Buyers’ Interest – Potential buyers will review the teaser and submit an IOI, Indication of Interest.
- Prepare a CIM – IB will document key findings in a Confidential Information Memorandum or pitch deck.
- Access to CIM and Data Room – Based upon IOI initial pricing, select potential buyers will be provided a CIM and access to the seller’s data room.
- Conduct Management Meetings – Seller and IB meet with potential buyers prior to selecting the best buyer.
- Engagement Legal Counsel –With M&A legal counsel, document a comprehensive LOI, Letter of Intent.
- Document Purchase Agreement –With legal counsel, develop and execute a Purchase Agreement.