Company Sale or Acquisition According to Current Strategic Plan
There are many reasons for the sale of a company. It can be the owner seeking retirement, life changes (divorce, death in the family) and/or arranging a management buyout; it may even be a minority shareholder seeking liquidity (stock sale) in an otherwise non-liquid asset. These are just a few.
Selling a company also involves many questions in search of answers regarding return on assets sold, taxation, proceeds distribution, assets versus stock sale, etc. With proper planning and pre-sale packaging, many of these questions are answered in advance of any negotiations.
- Fits With investment/Divestment Performance Hurdles
- Coordination With Financial / Legal / Regulatory / Environmental Entities
- Assessing Growth Needs in View of Strategic Plan
- Development of Company Target List (including stand-alone, NPA, NSFs)
- Contact With Target Companies and Gaining Relevant Information
- LOI Preparation
- Target Valuation
- Negotiating and Structuring Transaction
- Drafting the Acquisition Offer for Principals’ approval
- Coordination of due diligence
- Coordinating and supervising the closing of transaction
Evaluation of Potential Investment
- Strategic Fit
- Integrable with current operations/policy
- ROI
Capital Structure
- D/E Ratios Acceptable to Principals
- Capital Sources Development
- Economic Fit