The 10 Steps“Maximizing Shareholder Value”
The following describes Amdel’s Merger & Acquisition Ten Step Process designed to maximize shareholder value by obtaining the best price and deal structure for our clients:
STEP ONE - ASSESSMENT OF COMPANY VALUE
Determination of the Fair Market Value of the client’s company in accordance with Revenue Ruling 59-60 and other guidelines for the valuation of privately held companies (Not disclosed to interested buyers).
STEP TWO - STRATEGIC BUSINESS REVIEW
On-site review of the client company’s organization (Completed in conjunction with Step One).
STEP THREE – PREPARATION OF CONFIDENTIAL STRATEGIC BUSINESS REVIEW REPORT & ONE PAGE CONFIDENTIAL PROFILE
A comprehensive document, The Confidential Strategic Business Review Report, is prepared which describes the client company in detail. Submitted to interested buyers only upon receipt of an endorsed Non-Disclosure Agreement.
Preparation of a one-page Confidential Profile, which highlights the acquisition opportunity without disclosing the name and location of the client company. Used during the initial Buyer/Investor Contact Phase.
STEP FOUR – TARGETED BUYER SEARCH
A Targeted Buyer Search is performed utilizing Amdel’s database of 3,500 active buyers and 10,000 Private Equity Groups and Investment Funds. This search is then filtered and modified to create a list of potential Synergistic Buyers, Highly Capitalized Buyers, also known as Target Buyers.
STEP FIVE – INITIAL BUYER CONTACT & DATABASE PLACEMENT
Targeted Buyers are directly contacted by Amdel Associates, and receive the client’s Confidential Profile and a Confidentiality Agreement.
STEP SIX – INTERESTED BUYER CONTACT & FOLLOWUP
Upon receipt of a signed Confidentiality Agreement, The Confidential Strategic Business Review Report is sent to interested buyers/investors.
STEP SEVEN – LIMITED AUCTION PRICE MAXIMIZATION
Amdel follows up with interested buyers and obtains indications of interest from potential purchasers using an auction-based approach.
Amdel obtains a Letter of Intent from buyers submitting the highest purchase price, and conducts a credibility review and verification of financial qualification of interested buyers.
STEP EIGHT – BUYER VISIT COORDINATION
Amdel Associates counsels client relative to pending buyer visit and provides guidance relative to preparation of Buyer Visit Agenda & Meeting Objectives (management presentation, facilities tour, additional documentation required, buyer-client interface & discussion guidelines and other relevant details to ensure a positive image and successful meeting).
STEP NINE – FINAL REVIEW OF OPTIMUM LETTER OF INTENT
Amdel will review with client and his advisors, CPA, Attorney etc. the best buyer offers for, comparative purposes, and then conduct final negotiations with the chosen buyer to obtain the most favorable price and terms. The client is not obligated to accept any offer presented.
STEP TEN – DUE DILIGENCE, DOCUMENTATION & DEAL CLOSING
Amdel Associates will be present during this process and will assist the client and the client’s professional advisors in preparing for the buyer’s due diligence, documentation review and deal closing procedures.
Steps one through five of the Merger and Acquisition Process can generally be completed within 30 to 45 days, depending on the client company’s scope of operations.
The time to complete steps six through ten, ending with the successful closing of the transaction, is in the range of four to eight months, depending on whether the buyer is based in the United States, or is an International buyer.