NDA: The buyer signs a confidentiality agreement and verifies his identity.
Review: The buyer reviews all existing documents in the data room.
Initial Questions: The buyer contacts the offering broker with questions via email.
Broker-Buyer Conversation: a phone call takes place between broker and buyer to discuss the entire process and get to know each other (unless you are a repeat buyer or have previously spoken with the broker in charge).
Buyer-Seller Conference: a conference between buyer and seller is coordinated and conducted by the broker. A brief introduction is made at the beginning of the call, then the broker turns the call over to the buyer. This is a “get to know you” call, not a call to make offers and negotiate.
Presentation of Offers: After Step 4, offers to purchase the company can be submitted in the form of a letter of intent (LOI). Dragonflip can provide a template for the LOI upon request.
Letter of Intent: Once the offer is approved, both parties sign an LOI.
Due Diligence: The broker will set up a due diligence data room where the seller will provide all documentation requested by the buyer. Any outside due diligence firms that are retained will be given access upon request.
Purchase Agreement: Once due diligence is complete (or nearing completion), an APA or SPA is drafted. Who prepares the first draft will be discussed individually with the buyer.
Closing: Once the APA or SPA is signed, the seller receives the agreed payment by bank transfer and the assets or shares of the company are transferred to the buyer.