Indicative offer

As already disclosed, the buy side process begins by identifying potential acquisition targets. Be it companies on the local or foreign markets. Such process takes a couple of weeks and based on this exercise, we will prepare a Target List. We then commence to approach the targets.

If the seller is interested to start discussion about a potential sale to the buyer, we prepare a Non-Disclosure Agreement ("NDA") based upon which the seller provides us with necessary financial and business information in order to prepare an analysis of the company. Based on this analysis, an indicative value of the company is available (eg. value based on financial performance, value based on asset value).

Acting as the buy-side advisor, we draft a structured indicative offer (also known as Pre-emptive Indicative Term-Sheet or Non-Binding Offer). When presented to the seller, such offer includes not only the purchase price, but also the payment terms of the purchase price, proposed stake to be purchased in the company (minority, majority or 100%).

Should the seller agree to the terms received in the indicative offer (the buyer can request exclusivity for the process) he/she allows the buyer to carry out a Due diligence of the target.

Often, the buyer cannot fund the acquisition entirely from its own proceeds and intends to use bank debt in combination with own equity. Our Debt & Capital Advisory (DCA) team is prepared to support our client in drafting necessary document, tendering the banks and support during the whole process in securing external funding.