Quick reads
What are the steps in the process of buying a business ?
- Deal origination and target business identification
- Meeting the sellers
- Valuation
- Indicative offer to purchase presented to the sellers’ advisers
- Heads of Terms (HOT) or Letter of Intent (LOI)
- Signed HOT/LOI by both buyer and seller
- Financial and management information gathering and cashflow modelling exercise
- Search for a funder
- Indicative terms from a funder
- Final Term Sheet / Credit Backed Offer
- Due diligence
- Legals – the Sale & Purchase Agreement (SPA) and legal due diligence
- Transaction completion
- Celebrate briefly………before the real hard work starts