In continuation to my earlier post, this is the concluding part on the IB sell side M&A process
6) Due Diligence
After receiving the Indicative Offers, a selected set of potential investors will conduct their respective due diligence.
The IB is required to set-up virtual data rooms connecting the client and potential investors, upload the documents the potential investors seek during the process
7) Binding Offer
After conducting the detailed analysis of the information received from the client, responses to the DD queries, the interested potential investor will submit a “Binding Offer”
The Binding offer now is a formal agreement capturing the intentions of potential investors to go ahead with their investment decision
8) Final Candidate:
The proposed binding offers are then scrutinized and a final candidate is then selected. Post this the contract is up for signing and if any kind of negotiations are required then they get ironed out.
The transaction is then closed
9) Co-ordination:
The sell-side IB has to ensure that all doubts, queries, concerns raised by potential investors are addressed in a timely and accurate manner on behalf of the client across the multiple stages of the deal
10) Tombstone:
Upon a successful completion, many times IBs tend to create a “Tombstone” which is like a trophy which the core deal team keeps with themselves or at their desks as a memento/badge of honor or just for bragging rights!
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