Selling a company can take several months to even years, depending on factors such as the state of the business, the industry, the market, and the economy. At Benchmark International, we have created an efficient process that we use as a framework to guide any merger or acquisition from start to finish. While not every deal will follow this timeline exactly, it is what we strive to adhere to and what you can expect from the process, keeping in mind that when several parties are involved, timing depends on when they each do their part.
The 120 Days Prior to Going Live: Strategy Development & File Preparation
First, in order to determine the “go live” date (when we take the business to market) we carefully assess your needs and priorities as the business owner, the completion of audits and taxes, the harmonizing of the business’s external image, and the M&A market calendar.
In the 120 days prior to “going live” with your company, we will go through a preliminary preparation period. This period begins when you and your Benchmark Deal Team sign the engagement and we deliver a data request list to you in order to obtain the relevant information we will need to facilitate a deal. The initial delivery of these documents to us usually takes about two weeks. Then, two weeks after that, we conduct a Q&A session with you regarding the financial data to resolve any outstanding topics. This is when we dig in and do an even more thorough assessment.
A few weeks later, we have our first meeting with you for the presentation of any issues that we found, we request any additional data, and we conduct a preliminary discussion of a marketing strategy. In another 20 days, we have a second meeting to verify the completion of the harmonization of the company’s public image, finalize strategy, and recap any additional data still needed.
Then, in about three weeks, our deal team delivers drafts of the company Teaser and Confidential Information Memorandum (CIM). In the week subsequent to that, we will meet to finalize materials, we prepare market intelligence, and then we are ready to go live.
Two Months After Going Live: Solicitation of Candidates & Expression of Interest
Now that we are ready to go live, we move into the next phase of the process. We start by approaching prospective buyers. We begin obtaining non-disclosure agreements and screening candidates. Within about three weeks, our deal team delivers an interim candidate report to you, classifying candidates into three categories. We then meet to determine authorized recipients of the CIM out of the candidates delivered. Following this meeting, we deliver CIMs to a second round of prospects. You can expect us to be one month into this process when we deliver a finalized candidate report to you, which again classifies the candidates into three categories. Soon after, our team will meet with you to determine the authorized recipients of the CIM out of these candidates. Following this meeting, we deliver CIMs to a second round of invitees. By day 60, expression of interest is due from these candidates.
Two to Four Months After Going Live: Evaluation of Candidates & Offers
Now that we are two months into the process of having gone live, your Benchmark team presents the expressions of interest on behalf of prospective buyers to you. Next, you instruct us as to which candidates should be invited to bid. We then confirm each invitee’s continued interest and they are provided access to a preliminary data room.
At about three months in, letters of intent are due to us from the bidders. We revert to them with any questions raised by the letters of intent. Next, our team presents the letters of intent to you and follows up on any questions you have for the bidders. At this stage, around Day 107, we work closely with you to reevaluate the top bidders, and negotiations begin with one to three bidders. By Day 120, the letter of intent is executed and the counterparty is granted access to the complete data room.
Ready to Sell?
We’re ready to help. Contact our M&A advisory experts at Benchmark International to formulate effective strategies to grow your business or plan your exit strategy and sell your company for the highest valuation possible.
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL
Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $6B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 12 offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.