Market the deal

Selling a business – Part III:

We can mar­ket the deal after pre­pa­ring the busi­ness for sale. We shall bring the oppor­tu­ni­ty to the mar­ket main­tai­ning con­trol of the pro­cess and the dis­tri­bu­ti­on of infor­ma­ti­on, while moti­vat­ing bid­ders along par­al­lel paths on a level play­ing field in case of a broad or restric­ted auc­tion, or even limi­t­ing it to an indi­vi­du­al pro­cess, accord­ing to your requi­re­ments.

Even if fle­xi­bi­li­ty and readi­ness to amend pro­cess and papers is necessa­ry, a disci­pli­ned approach requi­res best pos­si­ble pre­pa­ra­ti­on and exclu­si­ve rep­re­sen­ta­ti­on. Any com­pro­mi­se on such initi­al decisi­ons is a tra­de-off pos­si­b­ly affec­ting the out­co­me for the sel­ler.

The normal procedure to market the deal is to:
  • Con­tact buy­ers with a redu­ced but strong no-name sum­ma­ry focu­sed on stra­te­gic and quan­ti­ta­ti­ve key ele­ments. Spe­cia­li­zed data banks are gai­ning impor­t­an­ce to expand reach and com­pe­ti­ti­on bey­ond the spe­ci­fic rese­ar­ched buy­ers list.
  • Agree con­fi­den­tia­li­ty (also refer­red as NDA, CU, NCND).
  • Deli­ver the detail­ed Offe­ring Memo­ran­dum (also IM, CIM)
  • Fol­low up, com­ple­te infor­ma­ti­on, arran­ge inter­ac­tion with manage­ment. The bet­ter the Offe­ring Memo­ran­dum, the les­ser the manage­ment dis­trac­tions, delays and dif­fe­rence in pro­s­pect buy­ers’ tre­at­ment. At this point the­re might still be many par­ties inte­rested in recei­ving infor­ma­ti­on.
  • Recei­ve non-bin­ding indi­ca­ti­ons of inte­rest. The­se uni­la­te­ral indi­ca­ti­ons which are some­ti­mes refer­red as let­ters of intent (LOI) too, shall con­tain infor­ma­ti­on about the real inte­rest, fit and abi­li­ty to exe­cu­te the tran­sac­tion.

In the mean­ti­me, inputs from buy­ers’ inqui­ries and from indi­ca­ti­ons of inte­rest help com­ple­te the Data Room extent and pre­pa­ring manage­ment pre­sen­ta­ti­ons.

At this point, stron­gly inte­rested par­ties on the short list will be gran­ted access to the Data Room, pro­ceed to face-to-face mee­tings, manage­ment pre­sen­ta­ti­ons, or some­ti­mes even site visits and be invi­ted to sub­mit final bids pos­si­b­ly based on a draft tran­sac­tion struc­tu­re or even a draft sale agree­ment, or a sha­re purcha­se agree­ment (SPA).

Brin­ging to the mar­ket the deal, have assu­med a bid­ding / auc­tion pro­cess while also easier and more con­fi­den­ti­al but less maxi­mi­sing bila­te­ral pro­ces­ses with sin­gle coun­ter­par­ties are com­mon too.

More details about how to sell a com­pa­ny are approa­ched in the next post. If you have ques­ti­ons, con­sult us, we’ll be glad to help.

External support to restructure companies in Greece

Taking advantage of recent changes for viable businesses.

Febru­a­ry 8th 2016, Dr. Dani­el H. Brüll­mann,,

After noti­cing in a pre­vious paper that the impro­ved Greek legal frame­work for insol­venci­es, which still seems dys­func­tio­n­al in some aspec­ts, and the recent reca­pi­ta­li­za­ti­on of banks open oppor­tu­nities to com­pa­nies and entre­pre­neurs to rest­ruc­tu­re their busi­nes­ses, we address some of the steps to under­ta­ke for eit­her out-of-court or in-court rest­ruc­tu­ring to save long term sur­vi­val of a via­ble busi­ness.