Divestments

Divestments

A typical sales process usually starts with a comprehensive analysis of the company in question. Thereafter, a detailed memorandum will be drawn up enabling potential buyers to evaluate the company.

Afterwards potential interested parties - strategic or financial investors - will be identified and approached with a short anonymous profile of the target company.

The seller might then select those potential buyers which have shown interest in his company and which he considers the best fit. These candidates will then be contacted on a strictly confidential basis.

Subsequently, the negotiations with the prospective buyers will start, in the course of which the transaction's basic parameters will be fixed in a Letter of Intent. After that the prospective buyer will initiate the necessary due diligence to verify the information/figures included in the company's memorandum, to determine the purchase price and to assess the chances and risks of the target company.

The final negotiations with the prospective buyer will follow, at the end of which the sales contract will be concluded.

• The M&A Process