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Business Acquisition
Advisor to buyer of web services company from competitor and former alliance partner.
Situation:
Client presented with an opportunity to acquire competitor, company assets, and client lists, with no liability assumption. Needed advisor to help with due diligence on what the company was worth as compared to initial asking price.
Action:
A business valuation of competitor's business needed to be done, with a fair and equitable offer price determined. Ascertained the buyer's financial condition and credit standing to secure financing. Consulted with all parties involved, including legal counsel representing both sides if applicable. A letter of intent and term sheet was created once certain critical amounts were calculated.
Results:
Due diligence was performed, including a business valuation to determine offer price. Price was set at a premium due to customer list, including the projects in progress included with the purchase. A letter of intent and detailed term sheet was created and sent to seller. Negotiations commenced as to final selling price and continuing involvement of seller as consultant. Financing packages were reviewed along with determining the appropriate banking relationship. Deal still in progress, expected to close in by spring of 2006. Still acting as advisor to buyer to close the purchase and set up new company division. Marketing and business planning will begin once sale is final.
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