M&A Auction Process

Sell Your Business. Maximize Your Exit.

When you’re seeking an M&A deal, step #1 is calculating your company’s market value. ACT Capital Advisors has decades of experience in determining valuations. We employ a number of methodologies to establish a target range. When combined with our industry knowledge, we’re able to provide a realistic estimate of how much your business is worth.

Exit Preparation
Pre-Marketing
We’ll create a Confidential Information Memorandum (CIM) detailing your company’s history, industry, management team, competitive dynamics, financials and more. It positions your company in the best light and provides buyers with sufficient information to assess their level of interest. We’ll also develop a Target List of prospective buyers.
Marketing
Working from the Target List, ACT will begin contacting buyers by phone, email and letter. We’ll forward “blind” company profiles to any interested parties. Prospects who want to pursue the opportunity are then asked to execute a Confidentiality Agreement (CA), after which we will send a copy of the more detailed CIM.
Indication of Interest
Prospects are asked to submit a non-binding Indication of Interest (IOI) by a specified date, typically within 45 days. The IOI must include the enterprise value, terms of a transaction, ability to close and length of the closing process. We use the IOI to qualify prospects and select which prospects move forward to the next step.
Management Meetings
Prospects are asked to submit a non-binding Indication of Interest (IOI) by a specified date, typically within 45 days. The IOI must include the enterprise value, terms of a transaction, ability to close and length of the closing process. We use the IOI to qualify prospects and select which prospects move forward to the next step.
Auction Process
After the management meetings, all remaining prospects are asked to submit a Letter of Intent (LOI). The LOI is non-binding, but is a formal offer. We then bring multiple bidders to the negotiating table, creating an auction process with back-and-forth competition that continues until the highest bidder remains.
Due Diligence
The company is “off the market” while the buyer conducts their due diligence. They may request documentation from your company and multiple visits by their acquisition team. At this time, you’ll need to secure legal counsel to meet with the buyer’s counsel to work through the details and finalize the Purchase and Sale agreement.

Closing the Deal

The auction process typically takes 6 to 12 months. It culminates in the execution of the closing documents and the Purchase and Sale Agreement, followed by the transfer of funds. From preliminary conversations to deal closure, we guide you every step of the way. While the decisions are entirely up to you, leveraging our auction process as well as our decades of experience enables you to get the best possible price and terms for your business.

Learn More About the Selling Process
What Our Clients Say
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Contact us now if you’re looking to buy or sell a business
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