The sale process normally takes from 6 to 12 months to complete. Once exclusively appointed, Fusion will organise the process into set stages, keeping you in control at all times.
Stage 1: Credentials (month one)
Fusion supplies a list of legal and financial documents that will be required, at a later stage, during the due diligence process. Information gleaned from key data and a few meetings with the principals enables Fusion to understand the salient factors of a company or division.
We then prepare a summary of the financial performance of the business (possibly in co-operation with your accountants), addressing any trends and issues. The treatment of revenues and core profits are discussed to ensure they are presented in an acceptable and positive format.
Alternatively, Fusion can carry out an in-depth audit of your business, leading to possible advice to improve the quality and depth of data before proceeding. This service, Credentials (see separate entry), ensures your core strengths are shown in the clearest and best possible light – a valuable exercise even if you aren’t selling.
Stage 2: market analysis (month two)
During this stage your Credentials Audit is finalised and a list of potential purchasers prepared and agreed. Fusion keeps in regular contact with domestic and international buyers. Using these contact reports and our proprietary database, we advise you on the most likely acquirers and their current appetite for deals of your type and size.
Clients need to be open and inclusive, revealing previous contact with any names on the list and suggesting any others they wish to include. Once the final list is agreed the tactics and timing of the marketing activity are planned.
Stage 3: marketing (months three to four)
The Fusion team contact directly and in many cases meet with the identified buyers on the list. Assuming enough general interest is being shown, we release the agreed Credentials Report after securing a signed confidentiality undertaking.
There then follows a process of phone calls, further information exchange and buyer meetings before offers are received. Ideally, there is a co-ordinated and orderly auction process to reach ‘Heads of Terms’ with one – or in some exceptional circumstances – several parties.
At this time, a data room is prepared, which is made available immediately before or after ‘Heads of Terms’ and possibly contains a draft legal agreement prepared by the client’s solicitors.
Stage 4: completion (months five to six)
Even as legal agreements are being created, there is still likely to be some further due diligence required by the purchaser, but by this time both parties are likely to be tied into an exclusivity period, which will encourage the purchaser to maintain momentum.
Your lawyers and accountants aided by the Fusion team, will finalise the transaction and co-ordinate the creation of the ‘sale and purchase agreement’.
Stage 5: post-completion
Most sales involve a post completion period, ranging from a few months to several years. Your professional advisers will advise you on any technical issues, with Fusion helping to clarify any points that arise.
The sale is likely to create a number of issues that you will need to address. Fusion and our network of professionals can advise on any financial, legal and investment planning requirements.
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