Club-Initiated Disposal Process
How We Can Assist
We have learned by experience that the skillful preparation of a deal and smooth management of the transaction are integral in securing the value of a sale.
Current market conditions have made the above more crucial than ever before. Sellers and buyers need to understand the motivations of their prospective-sale counterparties and be able to foresee what to expect. Experience and expertise are also required when contemplating the transaction’s potential structure.
Our Sell-Side and Buy–Side Transactional Support services help potential Investors and Clubs adapt to these new realities. We offer complete project management services that cover all the aspects of the transaction process, ranging from the evaluation of whether a transaction disposal should be considered, to all the necessary post-transaction actions, including interim planning and execution stages.
Our Sell-Side Assistance services ensure that Sports Clubs navigate the disposal process with effectiveness and efficiency, as well as achieve maximum value in their transactional outcomes.
Our services are tailored to fit the individual needs of the particular disposal with which we are assisting and usually include the following steps:
Step 1: Analysis of Disposal Options
- Assessing the available options by reviewing the business’ strengths and weaknesses against industry benchmarks
- Identifying key issues for further investigation and potential deal breakers
Step 2: Transaction Structuring
- Developing robust forecasting models that are focused on key business drivers
Step 3: Information Memorandum and Management Presentations
- Drafting the Information Memorandum
- Preparing and showcasing “management presentations” to potential purchasers and their advisors
Step 4: Vendor Due Diligence
- Preparing an independent report initiated by the seller and directed to prospective purchasers
- Performing an analysis of the business, covering matters likely to be of interest to prospective purchasers
Step 5: Data room Preparation
- Identifying the key information required by prospective buyers
- Review of information to be included in the data room prior to release, for accuracy and consistency
Step 6: Data room Management
- Monitoring data room file usage and other bidder-team activity
- Organizing and managing the Q&A process as well as reviewing answers prepared by the club in order to avoid inaccuracy and confidentiality issues
Step 7: Closing Process Assistance
- Preparing a detailed schedule of all necessary steps and identifying resources needed (providing specialists if required)
Step 8: Sale and Purchase Agreement (SPA) and Negotiation Support
- Commenting on price adjustments under the SPA during the negotiation process as well as on warranty and indemnity clauses
Step 9: Post-Disposal Assistance
- Implementing transitional service arrangements, and helping protect the club’s position under the related contracts
- Advising clubs on the form of any dispute resolution process
INVESTOR-INITIATED ACQUISITION PROCESS
Buy – Side Assistance:
Our Buy-Side Assistance services ensure that our clients navigate their possible investment in Sports Clubs with the utmost safety and efficiency. We ensure that they identify bespoke investment opportunities and receive the most favourable terms and pricing, ensuring at the same time that any possible pitfalls are avoided diligently.
Our services are tailored to fit the individual needs of the particular transaction with which we are assisting and usually include the following steps:
Step 1: Deal Strategy
We work alongside you to develop a deal strategy that is in line with your vision, as well as a clear capital allocation plan.
Step 2: Identification of Targets
Utilizing our borderless network in the sports industry, we identify the existing opportunities and prioritize the targets on a “best-fit” basis.
Step 3: Evaluation of Targets
We appraise the preferred target/s through a complete review of the Club’s value drivers and build different scenario models to calculate potential returns. At the same time, we oversee the data room process and perform financial due diligence.
Step 4: Execution of Deal
We submit the Non-Binding Bid to the Target’s advisers and build robust and adaptable cash flow forecast models. We negotiate and execute the deal, concurrently addressing any issues that arise from our additional due diligence work
Step 5: Maximization of Value
We develop an effective implementation plan for Day 1 and a comprehensive view of the newly-acquired Club’s operating model so as to minimize disruption.
How Our Clients Benefit
Control of the process in all phases of the deal
- Value preservation throughout the deal
- Safe Data handling during negotiations
- Identification and management of possible deal-threatening issues
- External credibility in validating perceived value drivers
- Efficient planning and execution of the transaction
- The compilation of due diligence documentation results in a seamless process