Your Indication of Interest (IOI) should
include answers to these questions
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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)?
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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 his time or ours with an offer that is unrealistically low.
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What would be the structure of the payment (e.g., 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.
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What would be your source(s) of capital? This is to make sure you have the resources to buy the company.
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Do you need the approval of a Board or investor group to consummate the transaction? This is to give us a sense for who your stakeholders are.
Please feel free to include any additional information that helps frame your IOI, including if you only intend to purchase one part of the business.
For those who are invited Management Presentations will be held approximately two weeks after the IOI deadline; LOI's will be due two weeks after that.
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If you have any questions, please contact James Marciano at james@soleburyadvisors.com.
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