There are two paths.

First is the preparation of the offering document (called a Confidential Information Memorandum or Offering Booklet/Prospectus, etc.). A list of target buyers is prepared. The offering document can be sent out, or a 2 to 3-page summary “tickler” letter can be sent out first. The targets that respond will then receive the complete package. Once the buyers’ responses are in, you will select the 5 to 7 of interest based on their level of interest and offers. These are allowed to visit and perform limited due diligence. Earlier, a complete set of appropriate documents has been placed in a cloud-based virtual data file to make this due diligence easier. These 5 to 7 make their offer in a non-binding memorandum based on their due diligence – we’ve earlier indicated what we want. You select the one which is best and proceed to sole due diligence to close the sale. This process is often likened to a “horse race” and can produce the best results.

Instead, you can decide to approach a select number of buyers who you want to approach to gauge interest and then go to the “races” later.