Important preparations include:
The BCMS 78 Point Checklist
Within 4-5 weeks of commencing a new project we will carefully work through our 78 point check list in order to prepare for the forthcoming negotiations. We will need to collect all the information necessary to answer the questions that may be raised during the negotiation meetings.
The most important aspect for establishing control of the negotiation is to locate a choice of prospective purchasers. Following that comes good preparation of documentation.
The BCMS Dry Run meeting
Prior to the negotiations BCMS carry out a dry run meeting. During this time we will act as pseudo acquirers, together learning the best tactical approach. The main reason for this meeting is simple. Most of our clients have little experience in selling companies. On the other hand most acquirers are experienced in these matters. The playing field needs to be levelled and the dry run meeting is the ideal tool.
To add to the problem we often find that the first potential buyer to attend the negotiations is one of the best. You don't want this meeting to be your guinea pig.
In addition we will need to take early tax advice in order that the lawyers can structure the deal in the most tax efficient way.