Sell Side Advisory Agreement

Each transaction begins with the analysis and understanding of the business sold (because we cater to the most profitable potential buyers by understanding what we sell) and by evaluating the business (since we get the best price for you, understanding exactly how much it is worth). Unlike other networks of auditing companies or capital markets companies that also conduct merger transactions, Terra is a professional network of investment banks specializing exclusively in mergers and acquisitions advisory services. If the valuation is in line with the owner`s expectations and there is a decision regarding the sale of the business, the preparation of a detailed offer memorandum begins. However, there are times when a more formal and written evaluation is required, which CGK can also provide. These formal assessments are prepared in accordance with the standards of the National Association of Certified Valuation Analysts. These formal assessments are ideal for estate planning, purchase/sale agreements and legal requirements. An oral agreement is something we rarely find. At best, there is a very high degree of trust between the advisor and the seller. This can happen when the advisor and buyer are close friends. Alternatively, the seller does not want to formalize the agreement for any reason. As a result, as an owner, you lose control of the process.

If you do not sign a warrant, you run the risk that someone will approach what they want, say what they want, and maybe they present it badly – voluntarily or not. Very often, this valuation takes the form of an informal value area based on certain basic financial information (usually EBITDA – earnings before depreciation and amortization) and a debate about your industry, the exclusive characteristics of your business and other basic information about your business. Many companies or consultants in M-A only accept exclusive mandates. It considers that an exclusive mandate is preferable for both parties, as it clarifies all parties involved. It improves the chances of a successful sale and can significantly shorten the term of office. Councillors feel that their efforts deserve a mandate. They research, choose, look and approach them. An advisor presents the basics of the transaction to a buyer and, if seriously interested, the seller is assisted in the negotiations.

We explore and identify the most likely acquirers of your business. With a targeted approach, they prepare a number of qualified, synergistic and financial buyers to move closer to a potential transaction. This list is made up of extensive research and our network of contacts throughout the business and financial world. As a seller, you retain strict veto power over the list of potential buyers – no one is approached who is not approved by you. To ensure confidentiality throughout the sale process, all potential purchasers must of course sign a confidentiality agreement before receiving information about your business. With this article, we want to help business owners. We want to give them an objective opinion on the importance of the mandate they have chosen. The document explains why a written, exclusive and maintained mandate may be the best choice if you are serious about selling your business.

Our recommendations and comments are based on our experience with hundreds of cases, large and small. At the end of the day, it is an entrepreneur`s choice to choose the type of mandate he or she prefers and to bear the consequences of this election. Manfred Moschner | Monday, November 10, 2014 | Website: Another comment on engagement: Why should an advisor set time and resources if a client does not commit to a specific outcome? This can only be achieved with his agreement. “Working for free – results base” only makes sense if the end result is at the sole discretion of the advisor, i.e..