Typical Process of Divesting Equity Interests
The preparatory stage and transaction structuring
1,5 - 2 months
- Formulating the owners´ objectives and, if applicable, areas of expected co-operation with, and benefits brought by a strategic partner
- Structuring the transaction
- Identifying potential investors
- Indicative valuation of the company being sold
- Identifying the key value factors influencing the sale price
- Creating a long list of potential bidders
- Drafting the Short Profile, the Information Memorandum and transaction documents
- Designing the divestment strategy
The selection process
1 - 2 months
- Creating a competitive environment to maximise the proceeds
- Market testing
- Inviting of selected bidders to the tender
Due diligence and the bidding process
2 - 3 months
- Preparing the company‘s management for investor meetings
- Minimise potential negative influences of due diligence on Company‘s operations
- Creating a competitive environment to maximise the proceeds
- Steering the process and put in place level field conditions (including information provision) for all potential partners
- Bids reception and evaluation
Transaction closing
2+ měsíce
- Evaluating the bids received and recommending the winner
- Executing a Share Purchase Agreement and other documents minimising the guarantees and indemnities provided
Consistent steering of the selling process results in meeting the objectives to the maximum possible extent