The 10 Steps

Determination of the Fair Market Value

Amdel works closely with the client (seller) company in accordance with Revenue Ruling 59-60 and other guidelines to develop the valuation of the privately held company. This valuation is Not Disclosed to any interested buyers.

On-Site Review

The team at Amdel Associates will conduct a physical visit of the seller’s facility and will engage in a comprehensive, hands-on analysis of the company’s organization (Completed in conjunction with Step One).

Targeted Buyer Search

Our in-house research staff performs an extensive buyer search utilizing Amdel’s Domestic and International database of 4,000 active buyers and approximately 7,500 Private Equity Groups, Family Offices 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.

Preparation of Selling Documents

Amdel will prepare the two documents that will showcase the client company to Potential Buyers and/or Merger partners:

1. Executive Summary: A brief one or two page sanitized “teaser” document that highlights the acquisition opportunity to the potential buyer, including the features and unique characteristics that the company offers, and has built over the years. No company name or detailed location is ever listed in the Executive Summary. The Executive Summary is used during the initial Buyer/Investor Contact Phase.
2. Confidential Business Memorandum (CBM):   A comprehensive and extensive document in the form of book, that describes the client company in detail, with sections devoted to company history , product or service information, unique or proprietary features of the company product or service, markets served, sales and marketing approaches, company asset and facility list, personnel organization chart, and financial information and performance– usually three years history and three to five year projections. The CBM is only submitted to interested buyers upon receipt of a fully executed Non-Disclosure Agreement.

Targeted Buyer Outreach

Potential Buyers/Investors are directly contacted by Amdel Associates, and receive the client’s Confidential Profile and a Confidentiality Agreement.

Document Exchange

Upon receipt of a signed Non-Disclosure Agreement, the Confidential Business Memorandum is sent to interested buyers/investors.

Buyer/ Investor Follow-Up

Amdel meticulously follows up with interested Buyers and/or Investors and obtains “Indications of Interest” – an initial offering purchase price – from potential purchasers using an auction-based approach. Amdel then develops the buyer “Short List” and obtains a Letter of Intent from buyers submitting the highest purchase price. Amdel will also conduct a credibility review and verification of financial qualification of interested buyers.

Buyer Review / Visit

We sit down with the seller and carefully review our client’s options related to purchase price, terms, and conditions of each offer made by the Short List buyers. In addition, we counsel the client relative to pending buyer visit and assist in the 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).

Final Deal Negotiation

Amdel will review with the client and his/her 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.

Transaction Closing

Nothing matters until the deal is closed!  We are skilled at minimizing surprises that normally have a negative impact on a deal closing. Amdel will be present during the entire closing process and will assist the client and the client’s professional advisors in preparing for the buyer’s due diligence, documentation review, and ultimate deal closing.  We will also be available if there are any post-closing integration issues that need to be addressed.