The choice between an exclusive assignment and a non-exclusive assignment is an important issue that you should not hesitate to broach with your mergers and acquisitions consultant.
Firstly, let us recall what these terms cover.
• in an exclusive sell-side assignment, the seller does not intend to sign more than one sell-side assignment and wants CFK Finance to act alone in its sale project; the duration of this mandate may be limited;
• in a non-exclusive sell-side assignment, the seller entrusts CFK with the sale of its company, but retains the right to assign other consultancies, perhaps even to act alone.
How do you choose between these two options? The advice I give to our clients is to take into account the specific nature of their business activities. In effect, the more unique their business is, the more identifiable it becomes, and the more essential it is to control rumours about its sale – information that could destabilise staff and, in turn, weaken the performance of the company. And the more assignments there are, the more difficult it becomes to control the rumours.
We also recommend easily identifiable companies to opt for exclusive assignments. At CFK, when we act alone on a sale project, we guarantee our clients absolute confidentiality. This is undoubtedly one of the reasons why more and more business operators are entrusting us with exclusive assignments.