How long does your process take?
From kickoff to a LOI, the normal timeline is 4 phases that are 25 days each, or 100 days in total. The diligence time after a LOI to closing the deal is normally 30 to 60 days.
What are my time requirements during the project?
We estimate your time commitment at less than 10 hours total over the first 6 weeks of the project. After we kickoff the project your time requirements depend on the level of interest in your company, but I would assume 3-5 hours for each interested acquirer.
Do you create a confidential information memorandum (CIM) for outreach?
We do not. Our landing page lists your name, website, key commercial and technical details, and the estimated value. Your financials and growth metrics are unlikely to draw interest on their own, so we provide enough information for acquirers to understand whether they want to engage in the process upfront.
Can I remain anonymous in the outreach?
Our outreach goes directly to the acquirers, but the landing page is not available unless someone has that direct link. If you choose to stay anonymous, and your commercial success is not spectacular, you should expect significantly lower odds of a successful outcome.
How do you approach outreach?
We identify the two best contacts at the acquirer to review your company. This is normally the Corporate Development or Strategy team, the CEO, or the product team. We contact those people multiple times over a six week period to ensure each acquirer reviews your companies information.
Where can I see updates on outreach?
We have a proprietary reporting engine that shows contacts, engagement, interest, and details any conversations with acquirers at clients.basisstate.com
How many interested acquirers should I expect?
A normal process returns 10 interested acquirers, that lead to 6 discussions Those 6 initial discussions lead to 4 parties moving into deeper diligence.
What engagement results should I expect through outreach?
We can track that 80% of acquirers will at least engage with our outreach. 25% of acquirers will consider and engage with the landing page. We normally receive responses from 15% of acquirers. If a client chooses not to follow our advice for messaging or estimated value they can expect lower results.
I already have some acquisition interest. If I get an offer from an existing contacts do you still get an outcome fee?
Yes, but maybe not the full fee. By engaging Basis State in a process, you can increase urgency and drive existing conversations down a path to a quick conclusion. Our phased approach and fee structure allows you to pursue a full outreach process or to move an interested acquirer to a LOI without incurring the full fees.