Our firm is a 5 attorney firm in Detroit with three partners and two associates. The three partners are 79, 72, and 67 respectively. All three are considering succession and exit options. While internal succession is an option the firm has had a few merger chats with larger firms – on isolated unplanned occasions. We are having problems getting focused and generating interest from other firms. Is there a suggested process and or documents that we should prepare to generate interest and properly package our firm?
Suggest that you start by preparing an offer package that can be provided to other firms that you may approach directly or indirectly. A good offer package consists of the following:
The Offering Memorandum
Tells the firm's story
Provides relavant facts other firms want to know including:
Potential Growth Opportunities
Potential Synergies or Economies of Scale
Proposed Deal Structure
The firm profile is the first point of contact with potential buyers/merger partners. It summaries the key points and describes the firm without revealing any identifying information. If an interested party wishes to go to the next step a nondisclosure agreement is executed an a offering memorandum with more specific information is then provided.
Using tools such as these can help you focus your effort, cast your firm in it's best light, and reduce wasted effort on the part of all parties.
John W. Olmstead, MBA, Ph.D, CMC