How does the Deal Team help with each stage of the deal process?
Upon initiating a conversation with a prospective seller, the Deal Team helps facilitate a non-disclosure agreement between both parties. If working directly with a seller, the team reviews, marks up, and executes an NDA. This document to ensure any proprietary information shared remains confidential.
Once an NDA is signed, the Deal Team and EIR send an initial request to the prospective seller for financial information. After receiving this, the Deal Team reviews the data received, provides feedback, identifies red flags, and communicates follow-up information requests.
When appropriate, the head of our Deal Team visits a business’s headquarters alongside our EIR. In advance of the meeting, the Deal Team works with the EIR to put together an agenda, including key questions to be answered, and presentation materials.
If and when the timing is right, the Deal Team facilitates crafting and negotiating the LOI. This document is a nonbinding letter outlining the terms and price of a prospective deal. The team provides feedback on key transaction terms, including purchase price and deal structure.
The due diligence process takes approximately 90 days, and features several steps and external service providers, including further Business Diligence, Financial & Tax Diligence, Lender Diligence, IT Diligence, Background Checks, Insurance Diligence, and Legal Diligence. Our seasoned team is supporting our EIR every step of the process, including creation of financial models and third-party workstreams. They also solicit, review, and negotiate term sheets with lenders.
Once through due diligence, the Deal Team will help facilitate a purchase agreement, which outlines in detail the legal terms governing the transaction. They negotiate key terms in the purchase agreement (reps and warranties, net working capital, etc.).
The Deal Team ensures finalizing the transaction happens as smoothly and efficiently as possible, including managing the Funds Flow.