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DN124

Site Visits, Part 1

Site visits of a client’s facility are important steps that occur during the sale of a middle-market aerospace and defense company. Typically, there are three separate sets of visits. The first is an initial visit conducted by your M&A Bankers. Secondly, and most importantly, are visits to your facility by qualified buyers who have submitted acceptable Indications of Interest (IOI’s). Thirdly, visits conducted by a selected buyer after a signed Letter of Intent (LOI), to conduct on-site due diligence.

We will discuss the post-IOI and post-LOI visits in subsequent Deal Notes®.

The purpose of the initial visit to a client’s facility by your M&A Bankers is to enable your bankers to conduct their own due diligence so they can prepare the Confidential Information Memorandum (“CIM”) (see Deal Note 107). Your M&A Bankers will meet the management team, tour the facility, assess your accounting staff and systems, and assess the operations of your business. This visit also allows your M&A Bankers to identify potential areas of concern and find opportunities for improvement, before buyers visit the facility later in the sale process. The visit will also review potential presentations that could take place and identify the seller’s team members who could be present during future buyer visits,

The net result of this preliminary visit is to prepare you, your facility, and your management team for the next stages of the sale process and ensure that: i) your M&A Bankers can prepare a highly accurate and compelling CIM, ii) you and your management team will be well-prepared for buyer visits, and iii) your facility will show well.

Have a great day everyone,

Bruce Andrews
Partner