A Seller’s Diary – Month 9 – HoTs
I’ve finally signed the Heads of Terms (HoT’s)! Prism have managed to substantially improve the terms of both the offers in play, but in the end the decision of which one to choose was relatively easy. We all felt that the potential for a successful acquisition would be enhanced, and having spent so many years building the business up I want it to be successful under new ownership.
Agreeing the HoTs actually took some time – with Prism handling this process and advising on what should and shouldn’t be included. I’ve spoken to a couple of lawyers that Prism recommended and got both their input on the draft HoT’s. Based on this, a brief meeting and quotation, I have decided which one to go with.
Prism have stressed the importance of establishing a strong team of advisors to include a really experienced Corporate lawyer and they certainly seemed very knowledgeable about the process.
We’ve also agreed a timetable to completion – 8 weeks away and I’ve accepted an exclusivity period to cover this time – apparently this is not always a stipulation but if I were on the other side I think I would insist.
Due Diligence is now about to start – we’ve already been populating a virtual dataroom provided by Prism but there is still plenty of work to do. My FD is pulling most of the information together – not sure when to tell the other members of the senior team – will give the broker a call to discuss…