The M&A Process

1. Once Fleetridge Pacific accepts a listing engagement, we provide a complete analysis of the business and its operations.
   
2. Our analysts then prepare a confidential company profile. This profile provides prospective buyers with information about the business and highlights the positive aspects.
   
3. Once you approve the profile, we work with you to develop a pricing strategy.
   
4. We then develop a marketing plan which identifies suitable buyers. The goal is always to increase the likelihood of presenting multiple offers, thereby increasing your negotiating leverage.
5. We then solicit initial interest from a wide variety of buyers. We send out a blind profile or tickler, which gives some general information about your business but not enough information to identify the business or any specific information about your company.
6. Interested buyers are asked to sign a confidentiality agreement before the company profile is sent to them. The confidentiality agreement binds the prospective buyer to keep the information confidential.
7. All prospective buyers are profiled to determine eligibility before any information is sent.
8. Meetings and telephone conferences are scheduled to facilitate introductions between you and the prospective buyers. To insure confidentiality, we suggest that these initial meetings be scheduled off-site or after business hours.  These meetings provide you an opportunity to educate the buyer about your business and highlight the value of the intangible assets of the company.  You should also learn more about the buying company and their objectives to determine if the two companies are a "fit" and if there is a basis to move forward.
9. At this stage, we begin to solicit proposals from prospective buyers.  Proposals are normally submitted in the form of a Letter of Intent (LOI) or Term Sheet. The document lays out the framework of price, terms and conditions of the transaction.
10.  We work with you to negotiate the LOI by determining strategies, solving problems and examining opportunities. As third party intermediaries representing you, we examine the offer from all perspectives to help you negotiate a favorable outcome.
11.  Once agreement of the LOI has been reached, due diligence activities will begin.  Due Diligence provides the buyer with an opportunity to review financial, clinical and corporate books, records, policies and procedures of your company.
12.  During the due diligence period or immediately thereafter, the buyer will draft a definitive purchase agreement. This document incorporates the elements laid out in the LOI and adds representations and warranties. The Definitive Purchase agreement (DPA), sometimes called the Stock Purchase Agreement (SPA) or Asset Purchase Agreement (APA) is the binding document that concludes the transaction.  We work with you to orchestrate the process every step of the way.

How long does the M&A process take?

The structured process takes approximately six months to one year and can be broken down in to two phases:  Deal Assessment and Deal Execution.

Deal Assessment involves the analysis of the business, professional "packaging" of the company and developing a pricing and marketing strategy.

·         Analysis of Business and Recasting of Financials                 3-4 weeks

·         Determining valuation and pricing                                         1-2 weeks

·         Developing Marketing Strategy & Identifying Buyers               1-2 weeks

·         Creation of Company Profile & Marketing Materials                2-4 weeks

Deal Execution involves working with qualified buyers to obtain proposals, negotiating price terms and structure, due diligence and final negotiations of the Definitive Purchase Agreement.

·         Solicit Buyers and Obtain Interest                                         8-16 weeks

·         Solicit Proposals and Negotiate LOI                                      2-4 weeks

·         Due Diligence                                                                      4-6 weeks

·         Negotiate Definitive Purchase Agreement & Close                  2-4 weeks

These time frames are approximate and based on our experience.