I.Pre-Auction Preparation (2–6 Weeks)

A. Internal Readiness

• Assess company readiness for sale (financial, legal, operational)
• Identify internal deal team (CEO, CFO, legal, banker, etc.)
• Perform internal valuation and set price expectations
• Conduct internal SWOT analysis and define key selling points

B. Advisor Engagement

• Hire M&A advisor/investment banker
• Engage legal counsel experienced in M&A
• If necessary, bring on tax, accounting, or regulatory specialists

C. Data Collection & Documentation

• Build or refine the financial model
• Create a Confidential Information Memorandum (CIM)
• Draft teaser (1–2 page anonymous overview of the opportunity)
• Populate virtual data room (VDR) with key diligence materials

D. Buyer List Development

• Long list of potential buyers (strategic + financial)
• Prioritize based on strategic fit, financial capacity, and likelihood to bid
• Segment into tiers: Tier 1 (high priority), Tier 2, etc.

II. Go-to-Market & Initial Outreach (2–4 Weeks)

A. Launch Teaser & NDA Process

• Send teaser to approved buyer list
• Collect executed NDAs
• Track buyer engagement and interest

B. CIM Distribution

• Distribute CIM to NDA-signed buyers
• Monitor buyer questions, track activity level

C. Initial Management Presentations (Optional/Selective)

• Early access for high-priority buyers
• Gauge strategic interest and cultural fit

D. Indication of Interest (IOI) Collection

• Set deadline for non-binding IOIs
• Include price range, deal structure, funding source, and rationale
• Evaluate IOIs to select finalists

III. Due Diligence & Bidding Phase (4–6 Weeks)

A. Shortlist Final Bidders

• Narrow down to 3–6 serious buyers
• Grant access to expanded VDR
• Schedule formal management presentations
• Provide additional financial, legal, and operational info

B. Final Bids (Binding Offers or LOIs)

• Solicit Letters of Intent (LOIs) or binding offers
• Require detailed deal terms, including:
  • Purchase price
  • Reps & warranties
  • Key employees, earnouts, indemnities
  • Post-close integration strategy
• Use a bid instruction letter to ensure apples-to-apples comparison

C. Competitive Tension Management

• Encourage multiple bidders to remain active
• Banker may use "soft stalking horse" techniques to boost bids
• Optionally conduct second-round bids or best-and-final offers

IV. Buyer Selection & Final Negotiations (2–4 Weeks)

A. Select Preferred Buyer

• Evaluate offers based on:
  • Price and structure
  • Certainty of close
  • Cultural/strategic fit
  • Legal terms and post-close obligations

B. Negotiation of Definitive Agreements

• Purchase Agreement (APA or SPA)
• Employment agreements, earnouts, escrow terms
• Work closely with legal and tax counsel

C. Final Confirmatory Due Diligence

• Allow preferred buyer final access to data
• Facilitate site visits or customer references if required
• Resolve final diligence findings

V. Closing & Post-Close Transition (1–3 Months)

A. Deal Signing & Closing

• Sign definitive agreements
• Manage regulatory approvals (if applicable: HSR, CFIUS, etc.)
• Address pre-closing conditions and consents

B. Funds Flow and Legal Transfer

• Finalize working capital adjustments
• Execute closing documents
• Transfer cash and ownership

C. Communication Plan

• Internal: Employees and leadership
• External: Customers, vendors, press (if applicable)

D. Post-Close Integration Planning

• Handoff to integration team
• Monitor earnout metrics or escrow obligations
• Transition management or advisory roles as needed

Optional Enhancements

• Stalking Horse Bidder: Use to set a minimum bid in a semi-structured auction
• Dual-Track Process: Run IPO process in parallel to enhance leverage
• Simultaneous Outreach to Financial Sponsors: For fallback options or valuation benchmarking