Procedures
Sale, Divestiture, Merger
The advisory services for sale, divestiture or merging process involve different steps that require familiarity with the business and a clear understanding of the shareholders’ purpose in order to:
- Provide prospective buyers with the required information to value the business and direct them towards the most appropriate transaction;
- Reduce shareholders exposition to negotiation hurdles;
- Settle the negotiation according to client objectives.
Each step of the process demands efforts and a customized approach thereby improving contacts and negotiation efficiency:
Process Identification
The process starts by clearly identifying the Company requirements and the Shareholders’ purpose, and by understanding the Company’s business, processes and services.
Valuation
The Business valuation is a technical exercise that is supported by the company’s reality, its potential to grow and the market opportunities as well. The value must strike a balance between shareholders expectations and the market value perception to yield an amount that can be clearly and objectively discussed during a negotiation between companies or shareholders in order to maximize liquidity.
Information Memorandum
B,M,D prepares a customized documentation that includes detailed materials about the business, highlighting its attractiveness to capture potential investors’ interest. The presentation of the Memorandum is specific to each negotiation and is prepared from the perspective of potential buyers helping to uncover expected synergies.
Prospective buyers search
The search process is designed to identify "potential investors / buyers" and set the different approaches and negotiation strategies to reveal the best options that shareholders can exploit. Finding and selecting the appropriate investor is a critical step for the negotiation to succeed. B,M,D develops this work using its database, an oriented research approach and its contact network both in Brazil and abroad.
Negotiation
The Negotiation is the most delicate step in the process. By focusing their efforts to render the transaction nimble and efficient B,M,D professionals remain involved throughout the negotiation process: Confidentiality Agreement (NDA), information disclosure, Letter of Intent, due diligence, deal structuring.
