Process Map of How to buy private companies

1. Understand and identify post Acquisition management strategy Present briefing papers on key targets for initial approval to contact The Acquisition Approvals Model PHASE 1 Produce Acquisition Profiles Acquisition team agreed (for each acquisition profile) Identify priority targets and collate key facts on sector, targets, people 1 2 3 4 5 6 8 PHASE 2 Develop Strategic Direction IDENTIFY TARGETS Acquisition profile agreed including likely size criteria Ensure relevant targets exist to fit profiles ASSESSMENT OF TARGET AND PRICE MANDATE DEVELOP STRATEGY PHASE 3 PHASE 2 Approvals 7 Choose priority target and conduct in-depth review Seek mandate to negotiate with pricing proposal, strategic fit and post acq policy articulated within an Investment Paper 13 9 Contact target – if negative, Go back to 9 Meet target to understand key facts incl price aspirations Consider detailed strategic fit and Post acq plan 10 11 12 © The Portfolio Partnership

2. Contracts stage Legal Completion The Acquisition Approvals Model PHASE 4 Heads of Agreement meeting to agree broad terms Due Diligence technical, financial, operational Legal Due Diligence 14 15 16 17 18 19 23 PHASE 2 Meet with Target to clarify key facts LEGAL COMPLETION Heads of Agreement ratified with financial analysis attached and due diligence listed Final Post acquisition plan agreed POST COMPLETION NEGOTIATE PRICE & STRUCTURE PHASE 6 PHASE 5 20 Lessons learned report 24 POST ACQUISITION PLAN 25 © The Portfolio Partnership Public Announcements Agreed 21 Post acq plan, 30,60,90 days 22 Approvals