Arrowhead’s Sell-side Advisory Services assists the Company in:
- determining an appropriate valuation range,
- identifying and marketing to potential buyers, and
- negotiating, structuring and executing the transaction.
Sell-side Strategic Objectives
Arrowhead will assist management in determining its key objectives, such as:
- A target price range and minimum purchase price requirement.
- The pool of qualified buyers, both strategic and financial.
- Distributing data to protect the confidentiality of its contents and minimizing any potential adverse impact from the disclosure that the Company is for sale.
- Transaction structure that will optimize all relevant factors, including tax consequences.
- Specific deadlines or timing issues relevant to the sale.
- Management’s role with the Company after the sale.
Sell-side Value Creation – Marketing
By comprehensively marketing the Company to targeted buyers, including both strategic and financial buyers, Arrowhead will create serious buyer competition. Arrowhead has contacts at numerous private equity firms and energy companies in acquisition mode.
Using Arrowhead will show buyers that the Company is serious about selling and that there will be numerous bidders, which will encourage buyers to respond faster with higher offers.
Arrowhead will assist management in preparing a confidential memorandum to circulate to prospective buyers. The memorandum may include adjustments of earnings and other operating items to show the true worth of the business.
Sell-side Value Creation – Transaction Support
Arrowhead will focus on those items that are most important to the Company and will assist in developing counter-offers.
Arrowhead will provide sophisticated analyses of proposals, including contingent or future payments.
Arrowhead will work with Company counsel to review letters of intent and acquisition documents and identify potential concerns to the Company as well as present various solutions in drafting these agreements.