As a buyer, if you have found a potential practice to acquire, there will come a time in the conversations with the seller where it will get "serious" and you will want to provide him/her with an offer. While this is a common and simple step in the overall acquisition process, it is also easy to mess up and potentially lose a deal. You don't want an offer that is so informal and brief that it does little more than a verbal commitment, and the opposite will prove equally disastrous, with a comprehensive offer letter that borders on being a purchase agreement in length (often recommended by attorneys). Buyers are also concerned about not overpaying, and without expert advice from objective third-parties, it is often difficult to tell whether you are getting a "good" or "bad" deal. SRG will help you find that perfect balance to get your offer delivered, considered, and hopefully accepted.
Our goal is to help you make every decision with full information - including helping you consider the timeline, price, payment terms, tax and compliance considerations.
Step 1: Consulting
The first step is understanding you, your deal, and the seller. From there, Succession Resource Group will help you understand the competitive landscape for typical terms in an offer letter, how seller or bank financing can/will work, as well as preparing a pro forma cash flow model of the proposed deal, including a before and after tax estimate for both buyer and seller.
Step 2: Offer Letter
Pending the decisions you make with the team during the consulting and cash flow analysis stage, our team will prepare an offer letter leveraging our industry specific forms, ensuring you have all the major points you want to present included in an easy to understand format, but including all the important language you need, such as confidentiality, exclusive deals, etc.