Chapter 10
Mergers and Acquisitions—Sell-Side Transactions
Investment bankers who work on the sell side of transactions help companies sell themselves, or part of themselves. An investment bank is usually retained only after the customer has made a decision to sell, or at least is seriously considering doing so. Consequently, many bankers consider the sell side to be more enjoyable, simply because the odds of completing a deal are substantially higher than on the buy side.
Although practitioners (and customers) often refer to “doing” a deal, a merger or acquisition is never so simple a process that it can be summarized in a single verb. The deal timeline can be short and intense or excruciatingly long (and intense), but the basic necessary elements, at least from the perspective of the sell-side advisor, always include setting up the process, marketing the transaction, managing the bidding process, and executing the transaction.
It is important for exam purposes to understand the correct order of events in the sale process.
The exam will test your knowledge of the tasks of the sell side and the buy side. Memorize the following table.
M&A Sale Process Timeline—Buy-Side and Sell-Side Tasks
Sell Side
Buy Side
Preliminary
Preliminary
• Negotiates and finalizes engagement letter
• Negotiates and finalizes engagement letter (if applicable)
Preparatory Tasks
Preparatory Tasks
• Analyzes potential transaction structures, tax issues, regulatory issues, and corporate issues; evaluates existing obligations
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