The exit process will likely take six months or longer. There are several steps in the process:
- It begins with the advisor’s due diligence process, which can take a month or more.
- Preparation of marketing materials: (a “book” and supporting detail) can take weeks of drafting and reviews.
- Initial acquirer approaches which, with responses, will take a month or more depending on the time of year.
- Lots of initial meetings between the company and potential acquirers. If there are several possible suitors, this process can take a month.
- Acquirer due diligence, which will take a month or more.
- Offer or offers and attendant negotiations.
- Acquisition document negotiation. This can take a month or more for larger acquisitions.
If the exit is an IPO the steps are similar to the above but the process is much more rigorous and the costs involved are run into the $millions.
Formats for our coaching services
A large amount of information needs to be assembled to support any liquidity process—sale, merger, or IPO. Here is a list of the major information areas.
- Financial Information—Current and projected and including capital structure
- Products and Services—Descriptions, current and future, market position, customer concentration, etc.
- Customer Information
- Marketing, Sales, and Distribution
- Research and Development
- Management and Personnel
- Legal and Related Matters
We guide you through this process in its entirety for an exit strategy that is most valuable to you.