Selling a company involves the preparation and review of various complex documents, regardless of the type of buyer or investor involved. These documents include marketing materials such as teasers, confidential information memorandums, private placement memorandums, and executive summaries. Additionally, there are information requests for updated financial information, customer contracts, and customer data. Legal documents also

The investment teaser is a crucial document that prospective buyers will review about your company. A teaser provides your company’s business model, history, financials, and desired transactions. Its purpose is to attract the right potential buyers and provide them with an overview of your business, while also screening out irrelevant ones. The goal of the

The NDA The non-disclosure agreement (NDA) is the initial document in an M&A transaction, sometimes referred to as a confidentiality agreement (CA). Its purpose is to ensure confidentiality among buyers, establish terms of engagement, restrict disclosure to third parties, and outline other agreed-upon conditions. Using an NDA is crucial for protecting sensitive information from being

The Indication of Interest (IOI) An Indication of Interest (IOI) is a non-binding formal letter written by a potential buyer to express genuine interest in purchasing a company during the M&A process. It serves as the first written offer and helps the seller determine serious buyers from those who are not genuinely interested. The key

The Purchase Agreement The purchase agreement (PA) is the next major legal document after signing the LOI. The purchase agreement incorporates the terms from the LOI and includes new terms and conditions. It is important for the seller to be involved in understanding and navigating this document, with assistance from an M&A advisor and attorney.

Exploring exit strategies is a critical process that CEOs should approach with careful consideration. Selling a business is often the most significant transaction a business owner will undertake, making it crucial to find the right acquirer, at the right time, and for the best price. The potential financial and personal implications of a sale are