Here are the main stages that mark the progression of a transaction assignment with which CFK Finance is entrusted:
• you meet a CFK Finance representative; our Business manager outlines the challenges of a company transaction service to you
• you entrust our consultancy with a sell-side assignment
• our teams draw up the portfolio of your company that will be submitted to potential buyers
• our experts set out a basis for negotiation of your company and determine with your Associate the basis for negotiation that will be presented to potential buyers
• we set out the profile of the potential buyers
• you validate the shortlist of potential buyers that we have drawn up
• we approach these potential buyers
• you meet the potential buyers
• the potential buyer(s) confirm that they are interested in your company
• establishment of a “preferential acquisition plan” which stipulates the outlines of the financial offer and the terms and conditions of the transfer (for example, the seller will remain in the company for one year to carry out the transition, etc.)
• the potential buyer(s) confirm their interest for a second time via a letter of intent
• you accept the proposal that is best suited to your requirements
• the buyer draws up a draft memorandum of agreement and a guarantee agreement
• assisted by advisors (lawyers, accountants), the buyer and seller draw up this agreement
• you and the buyer sign a memorandum of agreement subject to conditions precedent and an Assets and Liabilities Guarantee agreement
• the buyer commissions an audit of your company and lifts the conditions precedent
• the buyer renews the deeds of purchase and you renew the deeds of sale. This is what is known as “closing”
• the buyer pays you and you transfer the titles of ownership to him
• you pay CFK the fees stipulated in the sell-side assignment.
This process is spread out over approximately fourteen months. It comprises two main parts: firstly, everything that takes place prior to the signing of a letter of intent by a potential buyer and, secondly, the discussions that take place thereafter. These negotiations usually involve more than 7 people: you, your lawyer, your accountant and CFK Finance; the buyer, his lawyer and one or more people to carry out the audit. Given the schedules of both parties, it is difficult to organise more than one meeting a month.
However, thanks to our intervention and our command of the various stages, some transactions have been finalised by CFK Finance in less than 6 months.