Hi,
Could anyone share your deal process in PE?
I am currently working in a local pe firm in Korea so that there would be a lot of difference in US throughout doing an actual deal process, which I want to know.
Here's what I do
MD brings a new deal.
Me researching the company and the industry
My team meets the company's CEO, hears IR, and asks questions
If MD thinks it's a go, I make an NDA file, a RFI list, and aQ&A list.
After receiving the lists above, I make TM Draft and the director reviews it.
So many corrections were made, but finally TM gets ready to be sent over all potnetial lp.
Signs MOU with the seller, makes DD schedule, and contact a law firm and an accounting firm(a consulting firm is necessary)
Start DD process, along with making IM(I don't do modeling since MD believes that LP does not believe GP's model and accounting firms does that(and My MD does not trust that model either))
After finishing IM, now it is fund raising time.
MD and a director meet with LP, and I answers to all the questions that LP sends.
Luckily my team gathers all loc that we needed, and makes the fund.
Signs SPA with the seller and I make capital call requests.
Rest paper works and its done.
BTW I do make a model each time i do the deal just to make sure that i do not forget how to do it.
1. Senior shares a new deal
2. Associate/Senior Associate gives a first look into the IM/Model
3. IRL is sent to the sellside advisor/sellers
4. Internal projections and memo for initial IC approval is created
5. Discussions are held with sellers/advisors to agree on an initial NBO
6. IC approves submission of NBO and budget for DD
7. If NBO is accepted, advisors are contacted for DD (LDD, CDD, FDD and TDD)/Should debt funding be required discussions can also start at this moment
8. Post-DD, findings are presented to IC and approval is sought to submit a binding offer and SPA
9. If BO and SPA are accepted then we proceed with signing
10. Closing and funding
Is this process based on an investment with a blind fund? If I need to make a project fund, does fund raising process is needed in btw 7-8, along with debt?
This is for a blind fund. If you need to raise capital then instead of sharing with IC you will share with your investors to obtain their buy-in
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