Mamp;amp;ASaleProcessSL.pptVIP

Overview There are a wide array of options available when structuring a business sale The MA banker works with the client to understand selling requirements and strategic goals, which include: Exit strategy alternatives Appropriate buyers and types (strategic vs. financial) Valuation expectations Timing of sale Tax consequences Future participation of key management and employees An outright sale is not always the best option. Alternatives may include: Retaining equity stake in the business Selling to employees Identify working or investment partners Other hybrids Confidentiality Confidentiality of a potential sale is a major concern for the Company A leak in a deal can cause significant strategic, financial and legal ramifications A change in ownership can often mean a change in business objectives and decision-making Competitors capitalize on this information Business partners and vendors may seek contracts elsewhere due to future uncertainty New and existing customers may question the strength of their relationship post sale Employees become very concerned with potential employment status and new leadership Public companies are particularly sensitive to leaks as they affect stock prices and, therefore, deal economics Leaks are generally a function of poorly run processes Leaks can ruin a bank’s credibility MA Banker’s Role The MA banker is hired to run a process Similar to a litigator, the MA banker is brought in for a particular purpose Purely an execution role The MA banker is responsible for: Defining exit options and strategies Valuing the Company Recasting financial information Presentation and packaging Buyer qualification Marketing Management coaching Due diligence facilitation Price and contract negotiation Defining Options and Strategies There are four (4) basic types of sale strategies a Company can pursue The decision of which to implement is primarily based on (i) level of disclosure, (ii) number of buyers and (iii) speed of process Auction process