PE deliverables throughout the deal?

Im starting to understand sell-side M&A deliverables and deal time lines but am struggling to grasp how it differs on the buy-side. Would someone mind sharing the deliverables expected at each step of the process as the deal progresses from start to closing

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Not sure if this is what you mean, but here's a stab:

  • Pre-IOI
    • CIM overview (optional, could be an email summary for team on highlights/risks and business overview)
    • Basic model (to support valuation)
    • Basic investment committee materials (few pages to accompany model to explain business and rationale for bidding)
    • IOI bid letter
    • Meetings: Nothing or perhaps a virtual ~60 minute fireside chat
  • Pre-LOI
    • Databook (aggregation of various dataroom files and analysis of financial trends)
    • Updated model
    • Updated investment committee materials
    • Financing reads (optional)
    • LOI bid letter
    • Meetings: In-person management meeting (3-5 hours), follow-up diligence sessions (finance call, etc.)
  • Post-LOI / Exclusivity
    • Detailed model
    • Detailed investment committee materials
    • Market work (market study, regulatory story (optional))
    • 3rd party work and reports (legal, tax, accounting, background checks, insurance, others)
    • Financing reads / committed financing
    • Legal documentation negotiation (SPA primarily)
    • Meetings: More follow-up business diligence sessions, 3rd party diligence sessions (legal, tax, accounting, etc.)
  • Post-Signing (if not simultaneous with closing)
    • Committed financing / credit agreement negotiation (if not done above)
    • HSR filing
    • Funds Flow
    • Press releases
    • Employee communications and documents (employment agreements, equity packages)
    • Internal investment memo
  • Closing
 

Not the first time I’ve heard this, but are people really putting together IC materials just to submit an IOI bid? Maybe it’s just a LMM focus, where there’s a smaller IC and everyone reviewing essentially the same pipeline of deals but damn. It just sounds like some serious LP cya and busy work. If you have to sprint post IOI and want to bring in front of IC, that’s one thing, but for every pursued deal is insane. No wonder so many associates complain of busy work.

 

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