M&A Process
1 | Exploratory Meeting
The initial meeting between the business owner and GEP to discuss their goals, business operations, and potential strategies. This stage is crucial for establishing a mutual understanding and determining if their objectives align with the market realities.
2 | GEP Diligence
Our team conducts a preliminary review of the business, including financials, operations, and market positioning. This step helps us understand the business's strengths, weaknesses, and potential risks, laying the groundwork for the marketing strategy.
3 | Market Research, Comparables, and Valuation
Our team conducts in-depth market research, analyzing comparable transactions, industry trends, and financial metrics to determine a valuation range for the business. This stage is essential for setting realistic price expectations and identifying key value drivers.
4 | Execute Engagement Letter
The business owner and GEP formalize their working relationship by signing an engagement letter. This document outlines the scope of services, fee structure, and other terms of the advisory agreement, ensuring both parties are aligned on expectations.
5 | Create Marketing Package (Executive Summary & CIM)
Our team prepares a comprehensive marketing package, including an Executive Summary and a Confidential Information Memorandum (CIM). These documents provide potential buyers with detailed information about the business, highlighting its strengths, financial performance, and growth opportunities.
6 | Qualify Prospective Investors/Buyers
GEP identifies and qualifies prospective buyers or investors, ensuring they have the financial capability and strategic fit to complete the transaction. This step helps narrow down the list to serious candidates, saving time and resources in later stages.
7 | Receive Indications of Interest
Interested buyers submit Indications of Interest (IOIs), which outline their initial offer terms, including price range, deal structure, and conditions. IOIs provide a preliminary sense of buyer/investor interest and serve as a basis for further negotiations.
8 | Schedule Management Meetings
Our team coordinates meetings between the client’s management team and potential investors. These meetings allow investors to gain a deeper understanding of the business and its leadership, while our clients assess the investors' fit and intentions.
9 | Receive Letters of Intent from Multiple Investors/Buyers
After the management meetings, investors submit formal Letters of Intent (LOIs), outlining their proposed terms and conditions for the acquisition. Receiving multiple LOIs allows us to compare offers and negotiate the best terms.
10 | Review Offers with Clients
Our team reviews the LOIs with our client, comparing key terms such as purchase price, deal structure, contingencies, and closing timeline. This step involves strategic discussions to select the most favorable offer and determine next steps.
11 | Due Diligence Process
The selected investor conducts a thorough due diligence review, examining the business’s financial records, legal standing, operations, and other critical areas. The goal is to validate the information provided and assess any risks before finalizing the deal.
12 | Draft Legal Documents
Legal teams from both sides draft and negotiate the final purchase agreement and other related documents. This stage involves ensuring all agreed terms are accurately reflected and addressing any remaining legal or financial issues.
13 | Closing
The final step where all legal documents are signed, funds are transferred, and ownership officially changes hands. This moment marks not just the successful completion of the M&A process, but also a significant milestone in our clients journey. Selling or recapitalizing a business is often the culmination of years of hard work, dedication, and personal sacrifice. Our team at GEP understands first hand the emotional weight of this transition, and we are committed to ensuring that this final step honors the legacy you've built, while setting the stage for the next chapter in your life.