Selection of Buyer and Negotiation of Final Agreement
Following the analysis of the final bids, the seller, with the advice of the advisor, selects the most favorable bid. (As we have repeatedly emphasized, the best bid may not necessarily be the highest bid.) Sometimes, the seller selects two or more bidders with which to negotiate. Ultimately, the field is winnowed down to a single successful bidder. The sell-side advisor then helps negotiate the final financial terms of the deal.
Once the parties have agreed on the material financial terms of the transaction, the sell-side advisor will report those terms to the seller’s legal counsel and accountants. The parties may first sign a letter of intent memorializing key terms, although that practice is becoming less common in acquisitions involving public companies. Whethe