M&A Advisors Assist Business Owners With Each Stage of a Sell-Side Transaction

WASHINGTON, D.C., UNITED STATES, November 24, 2021 /EINPresswire.com/ -- Clare Advisors released a new guide for business owners that outlines the sell-side process and how an M&A advisor assists throughout the journey.

The full guide is available to read at:

https://www.clareadvisors.com/how-can-an-ma-advisor-help-you-during-the-sell-side-process-heres-a-quick-guide/

The guide outlines each stage of the transaction and how an M&A advisor is involved and helps facilitate the overall process.

Drafting and Outreach – In this stage, an M&A advisor helps business owners find potential buyers that meet the seller’s objectives and criteria. The advisor performs extensive market research based on the seller’s parameters in size, location, capabilities and services, and even culture.

At the same time, the advisor also compiles the seller’s relevant financial information and drafts a confidential descriptive memorandum on the company. This document provides potential buyers all the information they need to evaluate the company and inform their investment decision.

The M&A advisor reaches out to an agreed upon list of potential buyers by e-mail and phone. Buyers who respond to the initial outreach and express interest in acquiring / knowing more about the seller are then sent nondisclosure agreements. Once both parties sign the nondisclosure agreements, the M&A advisor will send a descriptive memorandum or other summary on the company to the potential buyers. Throughout this process, the original list of prospects will start to narrow down to a smaller list of more serious candidates.

Bid Process – The bid process begins with the M&A firm conducting management meetings with a select group of interested buyers. After the potential buyers have had a chance to speak with the owner(s) and learn more about the business, the M&A advisor will solicit preliminary indications of interest or letters of intent. These will be reviewed by the M&A advisor (and seller) and will be negotiated until each interested party submits their “best and final”. Once the M&A advisor receives all of the final offers / bids, they will then help the seller choose a bidder that best suits their goals and objectives.

Throughout this part of the process, the M&A advisor will work with the seller to begin to organize materials for due diligence, which is compiling all the relevant information the buyer will need to know before taking over operations after the acquisition.

Contract Review and Due Diligence - After a bidder has been selected and the seller receives the purchase agreement, contract review and negotiations begin. A purchase agreement specifies what company assets and liabilities are included / excluded in the sale, the deal terms, and the representations that each party is making through the transaction. During this process, the buyer will send a due diligence request list, in which case the seller will give the buyer access to the data room or individual files. The seller also performs his/her own due diligence to ensure the buyer will have the ability to purchase the company at the end of the transaction.

Closing – The M&A advisor also oversees the closing process, ensuring all disclosures, agreements, and closing requirements are met. The closing phase also includes preparing for announcements, notifying clients, and getting any necessary consents (bank, landlord, etc). Finally, both parties sign their respective final documents and the deal is closed.

Business owners who are interested in an M&A advisor to assist with a sell-side transaction can learn more at the Clare Advisors website: https://www.clareadvisors.com/

John Burns
Clare Advisors
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