Our client was looking to sell an asset after an extensive expression of interest campaign. They received numerous bids for the asset and had narrowed down their options to a small number of preferred bidders. We undertook an in-depth appraisal process of the preferred bidders to provide a recommendation as to which party our client should grant exclusive due diligence.
Our path of work included:
- Analysing bidder financial position and recent financial performance;
- Estimating bidder future financial performance;
- Meeting with bidders to understand motivations behind their acquisition;
- Assessing each party’s ability to perform contractual undertakings;
- Assessing the deal completion risk associated with each of the preferred bidders; and
- Making a recommendation to provide an exclusive due diligence period for one of the bidders.
The party whom we recommended for exclusive due diligence was the eventual purchaser of the asset to the satisfaction of our client.