Phase I – Business and Financial Analysis, Valuation and M&A Strategy
We work hand-in-hand with our client to conduct a complete analysis of their business and financial information. We evaluate a number of financial and operational performance factors to identify strengths, weaknesses, and opportunities. Using this analysis, we develop a valuation and effective strategy for maximizing our client’s M&A value and interest with prospective buyers.
Phase II – Preparation of M&A Materials and Identification of Buyers
Using the strategy we mapped out in Phase I, we work with our client to prepare the necessary materials to take our client out to market. This includes drafting at one-page Introduction or “Teaser” memo, presenting the company in a confidential profile; as well as a detailed Confidential Information Memorandum (CIM) that gives the reader a detailed look at the company’s history, services, strengths and financials.
Additionally we work with our client to develop a comprehensive list of qualified potential buyers that we believe would be a good strategic fit. This includes working with our client to develop a set of criteria on their ideal buyer and strategic partner.
Phase III – Go to Market and Solicitation of Offers
After preparing all the materials, we then launch and begin the process of reaching out to identified prospective buyers and soliciting offers. 2020 manages every aspect of this phase including transmittal of the teaser, implementing a Non-Disclosure Agreement with interested parties, sharing of the CIM, answering questions from buyers, scheduling introductions, and soliciting and negotiating Letters of Intent (LOI).
Phase IV - Post-LOI Due Diligence, Purchase Agreement and Close
Once we successfully negotiated a Letter of Intent, 2020 then supports the Due Diligence and Close Process. 2020’s efforts may include supporting the due diligence process; the buyer’s Quality of Earnings (QoE) review; support to our client’s M&A attorneys and accountants, and as needed, assist with the buyer’s Purchase Agreement (PA) terms and conditions, all leading to the PA signing and successful transaction close.