Professional Documents
Culture Documents
Task 2 Template
Task 2 Template
• Happy Family: Owns 60% of the company and is looking to sell • Preliminary Valuation: A financial advisor has quoted a
their stake due to the retirement of Ms. Happy. preliminary valuation of US$3,500 million for the business.
• Hour Family & Co Family: Each owns 20% of the company and is • Valuation Metrics: Based on industry trends and
also looking to sell their stake. comparable company analysis, the estimated EV/EBITDA
range is 10.0x – 11.5x.
• Ms. Happy: The majority owner and co-founder, looking to exit the
business and retire in a few years but would like to stay involved
with the business even after a sale.
Source:
1
CONFIDENTIAL
•Indicative Bid Phase: Bidders will receive access to the Information Memorandum and vendor due
diligence reports on Mar 19, 2020. Indicative bids should be submitted by May 13, 2020.
•Final Bid Phase: Shortlisted Bidders will be chosen to progress to the Final Bid Phase in late May 2020.
Final bids are anticipated to be submitted in late July 2020, following further due diligence and
presentations.
•Indicative Bid Requirements: Bidders should provide detailed information on the purchaser, purchase
price, assumptions, sources of funds, due diligence requirements, timing and contingencies, structure post-
acquisition, advisors, and any additional information that may be helpful.
•Confidentiality and Others: The Seller reserves the right to evaluate the terms and conditions of any
Indicative Bid, to accept or reject any such Indicative Bid for further consideration without notice, and to
alter or terminate the process at any time. All communication should be directed to the Financial Advisor.