Broad Buy Side M&A Process
Can someone give me a broad buy side m&a process overview? Pretty much the same scope as my following summary for the sell side process:
Winning the mandate - This phase includes creating the pitch, the actual pitch, the signing of the engagement letter, and any preliminary calls with management to learn more about the company.
Marketing - This phase includes receiving initial documents from management, setting up a data room, creating the marketing materials (teaser and CIM), and sending out the teaser together with the NDA. If the potential buyer signs the NDA, you send them the CIM. You will also set up your valuation model at this point.
IOI - The potential buyers may come back to you with follow-up questions and request a call, possibly with management. The amount of information apart from the CIM given to potential buyers is usually very limited at this stage. Potential buyers will then submit their IOIs.
LOI - This step usually starts with selecting a select few potential buyers who submitted an IOI to attend management presentations. There may be site visits involved here too. At this point, you will have set up a formal data room that is being populated with a base level of information. Almost all potential buyers will have specific follow-up requests and might even request additional calls with management. Potential buyers now submit an LOI.
Final due diligence and closing
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