Bid Procedure Letter

After the mandate is signed, the M&A advisors prepare all the necessary documents for the company acquisition process. One of the first documents is the "Bid Procedure Letter." This document provides buyers with a formal process and timeline for submitting non-binding offers. Each letter outlines the necessary information for the initial offer, including:

• The relevant deadlines in the M&A process, including the submission of the NBO and the LOI.
• The required format for NBOs and LOIs, which includes the enterprise value, equity bridge, equity value, and transaction structure.

Although the bid procedure letter typically contains additional topics, the above sections provide an overview of the key aspects a company must consider when carrying out the process.