OUR PROCESS
The Mertz Taggart process is designed with the following objectives:
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Putting our client in control
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Maintaining confidentiality
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Maximizing value
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Minimizing surprises
The process follows five basic phases:
Pre-Planning
Planning & Documentation
Marketing & Negotiation
Due Diligence & Definitive Agreements
Closing & Post-Closing Obligations
The details of each transaction are, of course, different. The process is flexible and is tailored to match the specific needs of each client.
PRE-PLANNING
PHASE 1
UNDERSTANDING EXIT OBJECTIVES
We collaborate closely with business owners over months or even years to understand their evolving exit objectives. This deep engagement allows us to provide tailored, market-based guidance.
IDENTIFY AND MITIGATE POTENTIAL PITFALLS
Our team proactively identifies potential transaction pitfalls early in the process. By addressing these issues upfront, we ensure a smoother transaction down the line, minimizing risks to our clients.
DEVELOP AND UPDATE A BRIDGING PLAN
We develop a comprehensive plan to bridge any gaps identified during our assessments. This plan is continuously updated to reflect changes in the business environment and the owner's objectives, ensuring the strategy remains effective and relevant.
PLANNING & DOCUMENTATION
PHASE 2
DEVELOP A GO-TO-MARKET STRATEGY
We collaborate with our clients to develop a comprehensive go-to-market strategy tailored to their specific objectives. This strategy includes identifying potential buyers or investors who align with the client's goals.
CURATE BUYER/INVESTOR LIST
Based on our clients' objectives, we curate a targeted list of potential buyers or investors. This list is carefully selected to ensure a strategic fit and maximize transaction success.
PREPARE DOCUMENTATION
We create a professional, confidential teaser and a best-in-class offering memorandum. Additionally, we compile a detailed data book and supplemental information to provide potential buyers with all the necessary details. Information is shared confidentially with the right buyers at the right time via our secure data room, ensuring the utmost discretion and security.
MARKETING & NEGOTIATION
PHASE 3
GAUGE BUYER INTEREST
This phase involves systematically understanding the interest levels of each potential buyer/investor. We actively engage with buyers to receive and evaluate their offers, ensuring we identify those with serious intent and alignment with the seller's goals.
COORDINATE MANAGEMENT DISCUSSIONS
We facilitate discussions between the management teams of the seller and potential buyers. These discussions help in negotiating the terms and conditions of the sale, ensuring both parties have a clear understanding and agreement.
NEGOTIATE TERMS AND SELECT BEST OFFER
We negotiate the key terms and conditions of the sale, aiming to secure the best possible offer for our clients. Once the best offer is identified, the seller and their selected buyer/investor sign a letter of intent (LOI), which outlines the key deal terms and a plan for closing the transaction, including important milestones and due dates.
DUE DILIGENCE & DEFINITIVE AGREEMENTS
PHASE 4
CONFIRM INFORMATION
The intent of the buyer's due diligence is twofold: to confirm the validity of the information shared thus far and to ensure there are no significant potential liabilities. This thorough verification process
helps build trust and transparency between both parties.
PLAN TO MITIGATE SURPRISES
We ensure proper planning to mitigate any unexpected issues that may arise. Our data room organization plays a crucial role in speeding up the due diligence process and maintaining efficiency.
NEGOTIATE AND FINALIZE DOCUMENTATION
We work closely with our clients and their legal counsel to negotiate and finalize all due diligence and definitive documentation. This collaborative effort ensures that all terms are clear and agreed upon, leading to a smooth transition to the closing phase.
CLOSING & POST-CLOSING OBLIGATIONS
PHASE 5
MEET CLOSING CONDITIONS
Once all closing conditions are met, we ensure that all final preparations are in place for a seamless transactions. This includes confirming that all legal, financial, and administrative requirements have been satisfied.
TRANSFER FUNDS
Upon meeting all conditions, the funds are transferred as per the agreement. This marks the official closing of the transaction, and the ownership is transferred to the buyer.
POST-CLOSING SUPPORT
We remain actively involved through the post-closing phase, assisting with the working capital reconciliation to help ensure there are no surprises. Our team is dedicated to providing ongoing support to address any post-closing issues that may arise.