The ASE Fleet's Weekly Take Off 28
How To Set Up A Data Room To Close More Deals
Today we're going to make sure that you're data rooms are easy to read and well organized.
Here is the basic layout for a numbered data room on an M&A transaction:
0 - A data room index in the same format as a book
1 - The Notice Of Confidentiality
2 - Your One Page Proposed Transaction or Executive Summary
3 - Your One page Business Plan from Jim Horan
4 - Your Pitch Deck (Our Newsletter Has Template On The Copywriting And Formating Portion)
5 - Your Full Business Plan
6 - Your Financial Model
7 - Your Org Chart If It's Not In The Deck
8 - A Folder For All Of The Financials
9 - A Folder For All Of The Legal (Articles Of Incorporation and Operating Agreement Are The Bare Minumum)
Tools That Can Be Used To Set Up a Dataroom include:
The Great Email
The email you send the data room link with should include 8 key numbers and tease the recipient into requesting the data room.
Subject: XYZ Appointment
I'm sending you this email because I know that you're looking for a good xyz deal.
Here are the key points:
Why are they selling:
Unique Selling Proposition:
Intellectual Property (IP):
A set exit date:
The last question in the email to potential buyers:
Is this something that you would like to take a deeper look at?
If this deal isn't a fit for you, that's ok; what is the perfect deal for you?
Confidential Information Memorandum
If there is insufficient documentation for a full-blown data room, a clean CIM is the next best option!
Here is how to prepare an ASE CIM:
Here is the templates that we use to request documents:
Here are ASE's Funding Requirements
A pitch deck on the buyer, bios, track record, collateral, cash down
A one-page executive summary
A one-page business plan
A financial model on the target company with trailing TTM and 3 years financials, a realistic 2-year proforma wouldn't hurt either
In the data room of the target's we need the entity's certification of good standing, the operating agreement if any, and the financials.
All financials must be in one PDF with the balance sheet, Cashflow statement, and P&L as a financial model showing the trailing three years and future/proforma 2-year projections. Along with separate spreadsheets.
Clear ask with terms and cash down
Meme Of The Week
Post Of The Week
Haha, their servers are already overloaded. I couldn't sign up.
Jarvis allocate more metal to Chat GPT now!
Deals Of The Week
Here are all of our off-market companies for sale and a list of vetted business buyers:
Best viewed on PC for a clickable table of contents on the left.
And bookmark the link. It's a live Rolodex!
*Disclaimer these deals are usually a better fit for a strategic buyer; because great deals don't last very long on here. At the same time, since it's not a public site, there isn't as much competition as public sites. So you ought to check the deal sheet weekly. Reach out to us for the NDA and full CIM on any of these deals*
Financial Architecting Tip Of The Week
The ASE Fleet's Financial Architecting Tool #16
Pipe transforms recurring revenue into up-front capital for growth without dilution or restrictive debt.
Deal Trophy Of The Week
Business Buyer Of The Week
Here is a list of all of our vetted buyers:
We have a liquid partner in Colorado looking for real estate management companies with 200+ doors.