Transaction process

 

Should a business transition be of interest, Chronos Capital would envisage the transaction process comprising of the key activities and milestones noted below. Ultimately, we want both sides to have ample opportunities to get to know one another and ensure that we are the right fit.

 

1) Preliminary discussions

An initial dialogue to get to know one another better. Chronos Capital would greatly appreciate the opportunity to find out more about you and your business, while giving you an opportunity to find out more about Ali Sabur and Chronos Capital. Ultimately, these discussions are designed to allow everyone to see if there is a good fit for a business transition.

2) Initial diligence

Chronos Capital would seek to execute a Confidentiality / Non Disclosure Agreement and complete initial diligence on the business. This would include you providing access to material information on the company to allow us to formulate an initial view on the opportunity.

3) Letter of Intent (LOI)

Following the initial diligence exercise, Chronos Capital would look to submit a written Letter of Intent outlining key terms of our offer including price, transaction structure, management retention plan and role of the owner(s) post-transaction. The LOI would also include an expected timeline to complete confirmatory due diligence during an exclusivity period and targeted closing date.

 

4) Exclusivity and confirmatory diligence

During the exclusivity period, Chronos Capital would retain external advisers (legal counsel, accountants, etc.) to assist us in completing more enhanced due diligence on the business to validate our initial diligence assessment.

5) Sale and Purchase Agreement (SPA)

In tandem with the confirmatory due diligence exercise, we would seek to negotiate the final, binding SPA that supersedes the LOI. The SPA will include, amongst other items, definitions used in the agreement, final purchase price, purchase price adjustment mechanisms, representations, warranties and indemnifications.

6) Financing and closing

Chronos Capital would seek to finalize financing required for the transaction and close the acquisition as soon as possible. Post-closing and subject to the pre-agreed role of the owner(s) we would look to work on the necessary transition processes.