{M&A Process/10} Indicative offers and management meetings

If overall interest from buyers in a transaction is high, we utilize a two-stage bid process, beginning with a deadline for submitting indications of interest (IOIs).

IOIs outline proposed deal structure; valuation methodology (for example, 5-6x EBITDA),assumptions (for example, a normalized level of working capital), and range (for example, $15M-$18M); and any other key assumptions or conditions.

In the “boil-down,” the IOIs and bidders are analyzed and compared. The most promising potential purchasers are invited to continue in the process.

If there is less interest or a limited number of bidders, we instead may utilize a single-stage process, skipping straight to the letter-of-intent (LOI).

Short-listed buyers are invited to meet your management team, either virtually or in-person, and conduct in-depth due diligence. This stage allows buyers to better understand the business and refine their offers.