M&A Process Overview

The Seller Journey

Your path from initial assessment to a successful close — where you are today

1

Value Builder
Assessment

Discovery

Completed

Independent assessment of business value, owner-dependence risk, and baseline Value Builder Score
Gaps, growth opportunities, and action plan identified to guide market readiness

2

Optimization
& Readiness

Value Enhancement

Completed

Financial modelling, tax analysis, and deal structuring completed across multiple scenarios
Operations streamlined and value drivers documented for buyer presentation

3

Due Diligence
Prep

Active — In Progress

Seller action portal launched — information requests, document uploads, and checklists underway
Data room build-out in progress to ensure readiness before buyer access

4

CIM & Market
Launch

Active — In Progress

Confidential Information Memorandum finalized — Elite’s story, financials, and growth narrative packaged for buyers
Curated buyer list engaged — teaser distributed, NDAs executed, and CIM released

5

Buyer Process
& Negotiation

Upcoming

Qualified buyers review CIM and submit Letters of Intent for comparative analysis
Interview sellers — selected buyer meets with ownership to understand operations, culture, and growth potential
Selected buyer granted full data room access for formal due diligence

6

Closing

Final Agreement

Definitive Purchase Agreement finalized — price, structure, and terms confirmed
Legal closing executed — ownership transfers, funds released, and deal completion

7

Transition

Up to 3 Months

Structured handover period to keep the engine running — operations, staff, and customer relationships maintained seamlessly
Remove headaches for the new buyer to maximize value and minimize risk through knowledge transfer, vendor introductions, and process documentation

M&A Process Overview

The Buyer Journey

A structured, seven-step process — from first contact to successful transition

1

Teaser

Initial Outreach

Stellaxis distributes a short, anonymous overview to a curated list of qualified buyers
Business identity not disclosed — key metrics shared in summary form only

2

NDA

Confidentiality

Interested buyers execute a Non-Disclosure Agreement before receiving any confidential materials
NDA covers deal materials, business identity, and non-solicitation of employees

3

CIM + Stage 1
Data Room

Information Release

Full CIM released — business overview, financials, team structure, and growth narrative
Stage 1 data room includes operations and key valuation information

4

LOI

Letter of Intent

Buyers submit LOIs with proposed purchase price, deal structure, and key conditions
Stellaxis reviews all LOIs with you and provides a side-by-side comparative analysis

5

Full Data
Room Access

Due Diligence

Complete data room unlocked — legal, HR, leases, equipment, insurance, and operations
Interview sellers — buyer meets with ownership to validate operations, culture, and key relationships
Buyer’s legal and accounting teams conduct formal due diligence; lender review runs in parallel

6

Closing

Final Agreement

Definitive Purchase Agreement finalized — price, working capital, and reps & warranties confirmed
Legal closing executed — ownership transfers, funds released, and deal completion

7

Transition

Up to 3 Months

Structured handover period to keep the engine running — operations, staff, and customer relationships maintained seamlessly
Remove headaches for the new buyer to maximize value and minimize risk through knowledge transfer, vendor introductions, and process documentation

Virtual Data Room

Buyer Dashboard

Qualified buyers will access a secure, password-protected data room containing all deal materials — organized, indexed, and ready for due diligence

Password Encrypted

Unique credentials issued per buyer after NDA execution

Access Tracking

Full audit log of who accessed which documents and when

Staged Release

Limited room with CIM; full room unlocked only after LOI accepted

Data Room Index — 11 Sections

01

Executive Summary

CIM
Org Chart
Deal Simulator

02

Financial

Historical Statements
Monthly Detail
Tax Returns
Banking
AR & AP
Debt
Working Capital

03

Sales Operations

Processes
Systems
Inventory
Licensing

04

Service Department

Equipment
Revenue Split
Certifications

05

Legal & Compliance

Business Registration
Licenses & Permits
Insurance
Contracts

06

Real Estate

Lease / Ownership
Zoning
Environmental

07

Human Resources

Employee List
Compensation
Benefits
Org Structure

08

Technology

DMS / Software
Subscriptions
Website & Digital

09

Market & Growth

Kelowna Analysis
Competitive Landscape
Growth Thesis

10

Valuation

EBITDA Workbook
Add-Back Schedule
Comparable Deals

11

Share Sale Support

Tax
Legal
Environmental
Liability