Thought I'd outline the high level steps of any deal for you guys, so you understand the process a little better:
1. Deal sourcing: This can be split into one of two major buckets - through sell-side brokers/advisors, or via direct contact with a seller. If it's through brokers, the subsequent steps are substantially streamlined, as there is a sell-side advisor who handles a lot of the paperwork and preparation of the books for the seller. When you're dealing direct with a buyer, you're carrying a lot of this job.
2. Financials and Data collection: This takes a couple of different forms. Firstly, is the 'harder' stuff - the financials, figures, add-backs, etc. The seller will need to send you this, which you then go through and ask any questions you may have. The 'softer' stuff, is the less financial/concrete info you will need - why is the seller selling, what is it they're seeking in a deal (this goes far beyond just money), and a deep dive on their operations so you can gain an understanding as to whether or not you (and/or your manager) can run this business after they are gone. This data is collected over a series of meetings and site visits, and isn't something that can just be sent via an email.
3. Negotiations: Making an offer, and going back and forth to arrive at an agreement.
4. Letter of Intent: This is the document that is then signed to set out the 'rules of engagement' for due diligence. Price, terms, break fees, etc.
5. Due diligence and document drafting: Now you're getting close to the end. This is when you have an external accounting firm go through the numbers, to ensure everything is ok with the deal, and all your assumptions are correct. Concurrently, a legal firm checks the company from the perspective of legal liability, while drafting the final documents. If you need funding approval, you engage the banks/funders during this time (albeit they should have been warmed up prior, so that this can happen fast).
6. Close/Completion: Definitive agreements prepared during step 6 are signed, money transfers take place, and you now own the business. Congratulations.
7. Integration: Now is when the real challenge begins... How do we actually grow this thing?
If you have any questions about the process, I'd be happy to elaborate - just drop them below.