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Process Overview

I. II. III. IV.

Marketing and  Due Diligence and Final Negotiations


Organization
Initial Bids Final Bids and Signing

 Banker due diligence and   Banker makes contacts  Select suitors for management   Final Due diligence


preparation of marketing  presentations and due diligence
materials
 Educate Suitor  Negotiation dynamics
 Host selected suitors
 Identify potential suitors
 Prepare legal documents   Enter binding agreement with 
and data room / due diligence   Detailed due diligence board approval
 Determine optimal sale  binders
strategy
 Additional due diligence   Announce transaction to 
 Interested suitors must submit  requests employees and public
 Prepare company process written indications of interest

 Foster sense of competition  File Hart­Scott­Rodino

 Distribute contract to suitors  File merger document

 Suitors provide revised offers   Shareholders’ meetings and 
and detailed terms / marked­up  closing
contract

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Process and Timing of Sale

Week 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Phase I:
Organization

Phase II:
Marketing and
Initial Bids

Phase III:
Due Diligence and 
Final Bids

Phase IV:
Final Negotiations  *
and Signings *

Typical
*Additional 1­2 months to close transaction Accelerated 

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Process Summary

1 2 3 4
Draft
Business Due Target Preliminary
Confidential 
Diligence and  Strategic and Indications of 
Investment 
Strategy Financial Investors Interest
Memorandum

5 6 7 8
Negotiating
Presentations
Terms and
to Selected Detailed Closing the
Valuation with
Strategic and  Due Diligence Transaction
Strategic and
Financial Investors
Financial Investors

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