Preparing for the Final Round
While due diligence is ongoing, the sell-side banker works with the seller to develop the final round bidding procedures, set a deadline for final bids, and determine what issues must be addressed in bids. Unlike first-round IOIs, final bids are binding on prospective buyers, and the contents of the successful bidder’s final bid will determine the contours of the final transaction.
The seller will want buyers to propose detailed terms on key business, strategic, and legal points. Often, counsel for the target prepares a draft form of a purchase/sale agreement, which is sent to final round bidders for comment along with, or in advance of, the final round bidding procedures letter.
Following consultation with the selle