How long does it take for a bank to release a CIM?
I am a first year analyst at a LMM PE firm and we had an initial meeting with the BB IB staffed to represent the sellers. They were appointed on the first week of August and we spoke to them around then.
They haven't shared a teaser/CIM since. We followed up two weeks ago and they said that "they will share in due course".
How long does this usually take? Maybe the sellers want to take it slow?
For what it's worth, the asking price for the sale is around ~$750M, by a MF PE.
Edit: thank you all for the replies! Appreciate it a lot.
If you’re working for a LMM PE shop, maybe they don’t believe that you’re a legit buyer for a 850MM asking price? When I think LMM I think of fund size of less than 1B and assuming 50% debt to cap this would be almost half of your entire fund?
I don’t mean to be rude here, just stating my thoughts on this.
Process wise, 2-4 weeks for us.
Could be many reasons. Markets have turned so launch could be delayed, process could be on hold.
May also be someone has pre-empted the process
Seller / advisor may also think you're not a credible buyer or can't get their purchase price and dropped you to tier 2 or keep you around for deal tension.
Usually it's because the sellers aren't coordinated/interested or are distracted. Teaser should be relatively quick and can be prepared in advance.
I've had clients literally take a week just to get back on a NDA - MD was mad of course but you have to understand that selling the company at a higher price isn't the KPI of some staff
You also mention "appointed first week of Aug" which (if true) typically means they hadn't started preping yet..
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