The Engagement Process

From kickoff to close. Transparent by design.

Most M&A processes are opaque to the founder until the wire hits. Ours is not. This is a phase-by-phase, week-by-week walkthrough of how an engagement actually unfolds — what we do, what we deliver, what we ask of you, and what to expect at every milestone.

Standard Sell-Side Process Five phases. Six to twelve months. One outcome — the highest-quality transaction the market will support.
01
Phase 01 — Engagement

Engagement & alignment.

Weeks 1–3 Approx. 3 weeks

The engagement begins long before the marketing materials. The first three weeks are about aligning on outcome, structure, and honest pricing — and discovering whatever needs to be discovered before we commit a process to the market.

We conduct a structured discovery, a preliminary valuation analysis, and a process feasibility assessment. If the timing is wrong, the multiple is unrealistic, or there is a structural issue that needs eighteen months of work — we say so before the engagement letter is signed. The discipline up front protects the outcome at the back end.

By the end of Phase 1, ownership has a clear-eyed view of the process, the likely valuation range, the timeline, and the work required of them through close. Nothing is launched on assumption.

Deliverables
  • Discovery memorandum & opportunity assessment
  • Preliminary valuation range & comp set
  • Process feasibility & timing recommendation
  • Executed engagement letter
  • Project codename & client portal activation
Week-by-Week · Phase 01
Week 01
Discovery sessions & preliminary financial review
Half-day session with ownership covering business model, customer mix, financial history, growth trajectory, and exit motivation. Begin EBITDA quality scorecard.
Week 02
Valuation analysis & market read
Triangulated valuation across precedent transactions, public comps, and private market intelligence. Sector-specific buyer mapping initiated.
Week 03
Engagement letter, kickoff & portal activation
Engagement letter executed. Project codename assigned. Client portal activated with engagement team, milestones, and document workspace ready for Phase 2.
Lead Advisor
Managing Principal
Owns engagement quality and ownership relationship through close.
Client Team
CEO + CFO + outside CPA
Engaged for discovery, financial review, and engagement letter execution.
Time Commitment
~12–16 hours total
Two half-day sessions plus financial document gathering.
02
Phase 02 — Preparation

Materials & buyer universe.

Weeks 4–10 Approx. 6–8 weeks

Phase 2 is where the deal is won or lost — though no buyer sees a thing. Six to eight weeks of rigorous preparation: the financial model, the CIM, the data room, and the buyer universe.

The financial model is built bottom-up with full historical reconciliation, EBITDA bridge, normalization addbacks, and a defensible forward forecast. The CIM is written to anticipate every diligence question a sophisticated acquirer will ask — not to obscure them. The data room is structured before launch, not populated reactively. The buyer universe is vetted and tiered by likelihood and strategic fit.

By the end of Phase 2, the materials are ready, the data room is loaded, and ownership has reviewed and approved every external-facing document.

Deliverables
  • Financial model with EBITDA bridge & addbacks
  • Confidential Information Memorandum (CIM)
  • Anonymized one-page teaser
  • Pre-populated diligence data room
  • Tiered buyer universe with strategic rationale
  • Process letter & auction structure
Week-by-Week · Phase 02
Week 04
Financial model build & EBITDA bridge
Bottom-up rebuild of trailing financials. EBITDA addback schedule with supporting documentation. Working capital normalization analysis.
Week 05
Forward forecast & quality of earnings prep
Three-year forward forecast tied to operational assumptions. Sell-side quality of earnings analysis for buyer-side acceleration.
Week 06
CIM drafting & first internal review
Initial CIM draft covering business overview, growth strategy, financial summary, and investment highlights. Internal QC and ownership review.
Week 07
Data room construction & population
Standard sell-side data room structure built. Foundational documents populated: financials, contracts, organizational, legal, customer, operational.
Week 08
Buyer universe development & tiering
Strategic and financial buyer universe identified, tiered by fit and likelihood. Strategic rationale documented for top 30–50 candidates.
Week 09
CIM finalization & teaser approval
CIM v3 finalized with ownership approval. Anonymized teaser approved. Process letter drafted with timeline and submission requirements.
Week 10
Pre-launch readiness review
Final readiness review with ownership. NDA template confirmed. Launch sequence and timing finalized.
Lead Advisor + Team
Principal, VP, Associate
Full advisory team engaged on materials, model, and buyer universe development.
Client Team
CEO, CFO, ops leadership
CIM input, data room population support, financial validation.
Time Commitment
~30–50 hours over 6–8 weeks
Concentrated upfront, tapering as materials finalize.
03
Phase 03 — Marketing

Outreach, IOIs & management presentations.

Weeks 11–18 Approx. 8 weeks

The market sees the deal for the first time in Phase 3. Teaser distribution, NDA execution, CIM access, and competitive bidding drive the process toward an Indication of Interest round, then a curated set of management presentations with the most credible buyers.

Outreach is sequenced — strategic acquirers and Tier 1 financial buyers first, then broadening to Tier 2 if needed. Every interaction is logged and assessed; every IOI is benchmarked against the others on price, structure, and certainty of close. Management presentations are choreographed and rehearsed so ownership shows the business at its best.

By the end of Phase 3, we have a competitive set of IOIs, a management presentation pipeline, and a clear view of the buyers who will likely advance to LOI.

Deliverables
  • Buyer outreach log & engagement tracker
  • NDA execution & CIM distribution control
  • Q&A log & data room access management
  • IOI evaluation & comparative analysis
  • Management presentation deck & rehearsal
  • Round 2 buyer selection memo
Week-by-Week · Phase 03
Week 11
Teaser distribution & outreach launch
Anonymized teaser sent to Tier 1 buyer universe. Direct outreach to top strategic candidates. NDA execution begins.
Week 12–13
CIM distribution & buyer Q&A
CIM distributed under NDA. Data room access granted. Active management of buyer questions, follow-up requests, and data room expansion.
Week 14
Tier 2 outreach (if needed)
Based on Tier 1 response, secondary buyer outreach launched to broaden competitive set. Process letter circulated with IOI deadline.
Week 15
IOI submissions & comparative analysis
IOIs collected and analyzed across price, structure, sources of capital, certainty of close, and strategic fit. Recommendation memo to ownership.
Week 16
Round 2 buyer selection & mgmt prep
Selected buyers (typically 4–7) advanced to management presentations. Presentation deck finalized; rehearsal sessions with ownership.
Week 17–18
Management presentations & site visits
Choreographed management presentations with each Round 2 buyer. Site visits where appropriate. Real-time post-meeting debriefs and feedback synthesis.
Lead Advisor + Team
Principal, VP, Associate
Full team driving outreach, Q&A, IOI evaluation, and presentation choreography.
Client Team
CEO + senior leadership
Lead role in management presentations; lighter daily burden during outreach weeks.
Time Commitment
~40–60 hours over 8 weeks
Concentrated in management presentation weeks (16–18).
04
Phase 04 — Negotiation

Final bids & LOI selection.

Weeks 19–24 Approx. 6 weeks

Phase 4 is where competitive tension translates into terms. Final round bidding, LOI negotiation, and exclusivity. The advisor's job in this phase is to maintain leverage as long as possible — and to ensure the LOI we sign is the LOI that closes.

Final bids are evaluated not just on headline price, but on rollover equity treatment, working capital peg, indemnification structure, retention requirements, and conditions to close. We negotiate hard on the terms that protect ownership — escrow size, survival periods, materiality scrapes, sandbagging — because these are where post-LOI value erosion happens.

By the end of Phase 4, ownership has executed an LOI with the buyer that delivers the highest combination of value, structure, and certainty of close.

Deliverables
  • Final bid solicitation & process letter v2
  • Comparative LOI analysis (price, structure, terms)
  • Negotiation strategy memo
  • Executed LOI with selected buyer
  • Exclusivity period & close timeline
Week-by-Week · Phase 04
Week 19
Final bid request & process letter v2
Round 2 buyers asked to submit final LOI with full terms. Process letter sets deadline, format, and required content.
Week 20
LOI submissions & comparative review
LOIs received and analyzed line-by-line: price, structure, equity rollover, working capital, indemnification, conditions, financing.
Week 21
Counter-negotiation with top bidders
Direct negotiation with top 2–3 bidders to improve terms. Strategic use of competitive tension; alignment with counsel on legal terms.
Week 22
Final selection & LOI execution
Selected bidder confirmed. Final LOI terms executed. Exclusivity period begins (typically 60–90 days).
Week 23–24
Confirmatory diligence kickoff
Buyer confirmatory diligence begins. Engagement of buyer's QofE, legal, tax, and operational diligence teams. Information request management ramps.
Lead Advisor
Principal & team
Direct lead on LOI negotiation; principal-to-principal escalation as needed.
Counsel
M&A counsel actively engaged
Legal terms of LOI negotiated jointly with advisory team.
Time Commitment
~25–35 hours over 6 weeks
Heavier in weeks 21–22; lighter at start and end of phase.
05
Phase 05 — Close

Definitive agreement & signing.

Weeks 25–32 Approx. 6–8 weeks

The final phase converts the LOI into a closed transaction. Confirmatory diligence, definitive agreement negotiation, working capital peg setting, and signing/closing. This is the phase where unprepared sellers lose money and well-prepared sellers protect every dollar of valuation.

We coordinate with counsel to negotiate the purchase agreement on terms that survive closing: escrow sizing, indemnification caps and survival, working capital target, R&W insurance positioning, transition services, and key employee retention. The data room remains active. We continue as the principal liaison between ownership, buyer, both counsels, and any specialty diligence advisors.

By close, ownership receives the structure they negotiated for, the working capital they expected, and the cash they were promised — wired and confirmed.

Deliverables
  • Diligence response coordination & data room mgmt
  • Working capital peg analysis & negotiation
  • Purchase agreement issue tracker & positions
  • Closing checklist & coordination
  • Wire confirmations & closing memorandum
Week-by-Week · Phase 05
Week 25–26
Confirmatory diligence — financial & operational
Buyer QofE in flight. Operational, customer, and key employee diligence coordinated. Information requests turned around within 24–48 hours.
Week 27
Working capital peg setting
Trailing twelve-month working capital analysis finalized. Peg negotiated with buyer based on normalized levels and cyclical adjustments.
Week 28
Purchase agreement first draft & markup
Buyer's counsel delivers first draft. Joint review with seller's counsel. Markup negotiated section-by-section with advisory team supporting on commercial points.
Week 29
Disclosure schedules & reps walkthroughs
Schedules built and walked through with ownership. Risk-allocation discussions on indemnification, escrow, survival, materiality.
Week 30
Final negotiation & signing
Final terms negotiated. Purchase agreement, employment arrangements, escrow agreement, R&W policy bound. Signing executed.
Week 31–32
Closing conditions & wire
Closing conditions cleared. Final closing checklist executed. Wires sent and confirmed. Closing memorandum delivered to ownership.
Lead Advisor + Team
Principal, VP, Associate
Daily process management through close. Principal-led on commercial negotiation.
Counsel + Tax
M&A counsel, tax advisor
Definitive agreement negotiation, structure, tax optimization, R&W placement.
Time Commitment
~50–80 hours over 6–8 weeks
Heaviest phase. Daily standups in final two weeks before signing.
— 06
Operating Principles

Six principles that govern every engagement.

The structure above is the standard process. The principles below are non-negotiable — applied to every engagement regardless of size, sector, or transaction type.

— 01

Honest pricing before the engagement letter.

If the valuation expectation is unrealistic or the timing is wrong, we say so before the engagement letter. The discipline up front protects the outcome at the back end.

— 02

The principal stays on the deal.

The senior advisor who originated the relationship is on every call, every negotiation, every closing. No bait-and-switch to associates after kickoff.

— 03

Materials anticipate diligence, not obscure it.

The CIM is built to answer the buyer's six questions, not to dress up the four they will ask anyway. Sophisticated buyers reward transparency with multiple expansion.

— 04

Competitive tension is structural.

We do not run "exclusive" processes that surrender leverage. Every mandate has a calibrated buyer universe and a process designed to maintain optionality through LOI.

— 05

Confidentiality is operational.

Code-named projects, controlled NDA distribution, segmented data room access, watermarked materials, and audit-logged document workflows — through close.

— 06

Post-close support is included.

Working capital true-ups, escrow releases, indemnification questions, transition services. The engagement does not end at signing — it ends when the final dollar is released.

— 07
Engagement Models

Three ways we engage.

The standard sell-side process detailed above is one of three engagement models we offer. Growth consulting, capital advisory, and operational transformation engagements follow distinct structures and timelines.

Model 01

Sell-Side & Buy-Side M&A

Full transaction execution — sell-side mandates, targeted acquisitions, recapitalizations, and management buyouts. Process detailed above.
Duration
6–12 months
Fee Structure
Retainer + success fee
Model 02

Strategic Growth & Capital Advisory

Pre-process value creation, exit readiness, capital structure design, banking relationships, and financial reporting infrastructure.
Duration
3–18 months
Fee Structure
Project or monthly retainer
Model 03

AI & Operational Transformation

Operating system redesign, automation strategy, BI implementation, and tech-enabled efficiency programs that compound enterprise value over time.
Duration
6–18 months
Fee Structure
Phased project fees

Ready to discuss what an engagement would look like?

Every engagement begins with a confidential conversation. Whether you are 18 months from a transaction or considering an exit this year, we are happy to walk through what the right process would look like for your business.

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