I've been involved in one transaction where the obvious interested bidders were given a templated set of outcomes ie projected results and asked to provide NBIO (Non Binding Indicative Offer) based on that. They were also given in advance a dd pack on IP and a range of other value-related items necessary (this sped things up and got them into a process and formal dialogue). They knew enough otherwise to join the dots being in the industry so this wasn't such a difficult process for them. It was made clear that the NBIO was to identify the parties who would receive in detail the actual results and in which order. ie top 5 NBIO receive offer to complete DD on actual data and the corporate (IP and related packages) and given a strict timeline to conduct complete DD and lodge a BO (Binding Offer) and any terms. A mechanism then was created to enable final DD and terms negotiation to get to UO (Unconditional Offer) - ie no other terms. All over 5-6 mths. Really important this process allows boards and advisers to have already had a good internal value discussion process over months before the data is finalised and be ready for the deadlines as they come.
I had tapped something like this before. My view is we will end up with an auction either way and that something like above could already be in train. ie we could already have indication of who's really interested with value envelopes and be able to furnish them with initial dd pack and preso packs sufficient to have them in an ongoing process and discussion on value drivers when the data comes out to naturally progress quickly into the next stage with a "firming" rather than "creation" of value indications and ratcheting down of conditions precedent as it becomes clear the deadline is real.
Above approach was a novel approach to wastewater treatment that was able to remove significant cost/time/risk/pollution from existing process. This was also a private business however (though there was an ASX 200 shareholder).
4DS Price at posting:
19.5¢ Sentiment: Hold Disclosure: Held
