Indication of Interest Guidelines
Your Indication of Interest (IOI) should include answers to these questions
Strategic Fit
How do you envision the acquired company fitting into your organization from a strategic, operational, and cultural standpoint?
We would like to understand why this acquisition makes sense. Does the company you're bidding on solve a problem, or maximize an opportunity (or both)?
Price Range
Based on the information you have to date, within what price range do you anticipate your eventual offer (LOI) falling?
Please specify the range in a dollar amount and/or a multiple of revenue or EBITDA. (For example, 5x to 7x EBITDA, 1x to 1.5x revenue, or USD $10-$12 million.) This is to ensure that someone doesn't waste their time or ours with an offer that is unrealistically low.
Payment Structure
What would be the payment structure?
For example: all cash at close; some % of cash at close with an earnout based on hitting milestones; stock. This is to give us an idea of how you are thinking of structuring the transaction.
Source of Capital
What would be your source(s) of capital?
This is to make sure you have the resources to buy the company.
Approval Requirements
Do you need the approval of a Board or investor group to consummate the transaction?
This will give us a sense of your stakeholders.
Please feel free to include any additional information that helps frame your IOI, including whether you only intend to purchase one part of the business.
Timeline
Management Presentations will be held approximately two weeks after the IOI deadline
LOIs will be due two weeks after Management Presentations