PLANNING A TENDER OFFER
 

1. SELECT THE TARGET THAT REPRESENTS A GOOD FIT

2. REVIEW ALL METHODS OF ACQUISITIONS BEFORE DETERMINING THAT A CASH OFFER IS THE BEST METHOD FOR THE PROPOSED TRANSACTION.

3. IS THE BIDDER WILLING TO PROCEED WITHOUT THE SUPPORT OF THE TARGET MANAGEMENT?

4. ASSEMBLE A TEAM OF EXPERTS TO GIVE ADVICE AT EACH STEP OF THE ANALYSIS AND PREPARATION.

5. ANALYSE THE TARGET RE: SHAREHOLDER MIX, CHARACTERISTICS OF MANAGEMENT, AND THE HISTORY OF THE TARGET'S EARNINGS AND STOCK MOVEMENTS.

6. SET THE TERMS OF THE OFFER TO THE TARGET SHAREHOLDERS AND MARKET PROFESSIONALS,AND ATTEMPT TO BLOCK COMPETING BIDS

7. BE STRATEGICALLY PREPARED FOR A PROLONGED CONTEST AGAINST RECALCITRANT MANAGEMENT AND OTHER COMPETING BIDS.

 

 

TENDER OFFER PROCESS

 

1. SET THE PRE-OFFER STRATEGY (FRIENDLY? VALUE? MAKEUP OF STOCK HOLDINGS

2 ORGANIZE THE TEAM...... LEGAL COUNSEL, INVESTMENT BANKER, INFORMATION AGENT, DEPOSITARY AGENT, PUBLIC RELATIONS FIRM, PRINTER

3. SET THE TERMS...... PRICE, # OF SHARES, DURATION, PAYMENT, CONDITIONS