- Laying the Foundation: The Exploratory Conversation and NDA
- The Engagement Letter: Defining Representation
- Data Analysis and Market Preparation
- Going to Market: Crafting the Right Strategy
- Indications of Interest and Buyer Selection
- The Letter of Intent: A Formal Commitment
- Due Diligence and Finalizing the Deal
- Closing the Deal and Beyond
When structuring deals, success isn’t just about numbers—strategy, relationships, and execution. Bill Walker, an expert in deal-making, breaks down the process that ensures buyers and sellers achieve their goals. His philosophy is built on trust, precision, and strategic engagement.
Laying the Foundation: The Exploratory Conversation and NDA
Every deal begins with an exploratory conversation. As Walker explains, “You know, how I like to see our process run is to have an exploratory call. Usually, we jump on a video call shortly after that.” This helps identify opportunities and assess the client’s goals.
Once potential is identified, the next step is an NDA (Non-Disclosure Agreement). “So typically, after the first call, if we think that there’s something there to pursue a little bit further, like a video call or something, that’s usually when I’ll say, hey, why don’t I send you an NDA?” Walker states.
The Engagement Letter: Defining Representation
If discussions progress positively, the formal step is signing an engagement letter. Walker describes it as “an industry standard that you sign an engagement letter when you want somebody to represent you.”
Walker emphasizes a structure that makes financial sense for his clients: “Typical in the market, it’ll be a commission-based structure. So we make it very straightforward. It’s a flat fee, and if you do a deal, then we would get paid.”
Data Analysis and Market Preparation
A critical phase in the deal-making process is data collection and analysis. Walker explains, “Well, this is where success and failure get created in the lab.” His team thoroughly assesses each practice, ensuring financials, operations, and market value are fully understood.
This process can take anywhere from three weeks for a single practice to two months for a multi-site entity. “You never know until you get into it,” Walker adds.
Going to Market: Crafting the Right Strategy
Once the groundwork is laid, the practice is taken to market. Walker’s strategy is comprehensive: “Until you can look at clean numbers and know the operational footprint of a practice or a group of practices, you can’t start talking about strategy evaluation of how much you are worth.”
His team creates a competitive bidding environment. “We sit down and do in-depth strategy sessions, coaching sessions, and educating our clients on the true strengths of your practice,” Walker emphasizes.
Indications of Interest and Buyer Selection
Once interest from buyers emerges, Walker and his team analyze the offers. “Again, it’s another insertion point in the process where we pride ourselves on kneecap-to-kneecap service, custom customer care for our clients,” he states.
Beyond just numbers, Walker ensures his clients understand who is making the offer. “We give an executive overview to our client, and then we dig in and give a prospectus on: Hey, this is our assessment of that company. This is the assessment of their financial backing.”
The Letter of Intent: A Formal Commitment
After narrowing options, the client moves forward with a Letter of Intent (LOI). Walker describes it as “a big, shiny engagement. It is a promise. You’re walking to the altar but not married yet.” The LOI is a non-binding agreement allowing both parties to proceed with due diligence.
Due Diligence and Finalizing the Deal
Once the LOI is signed, due diligence begins. This phase can take anywhere from 45 to 90 days. Walker explains, “You only get one opportunity to sell your practice. Buyers look at 50, 70, 100 deals. And so that’s why it’s so valuable, I think, to have us on your team.”
Throughout this period, his team provides guidance, ensuring the client remains informed. “Our job on that weekly basis throughout that diligence process is to collect data, be a single point of collection for you, gather that information that they need from you, from your team, get it to them, provide feedback, respond, answer questions, facilitate and take a load off of your shoulders.”
Closing the Deal and Beyond
The deal is closed once all terms are agreed upon and the paperwork is finalized. However, Walker’s commitment to his clients extends beyond closing. “I tell our clients: If you’re a client of Aesthetic Brokers, you’re a client for life. I have people who will reach out to us and ask a random question about a side venture they’re looking into. And we’re here for you for life. And that’s the way I want it.”
The deal process requires meticulous planning, from the first exploratory conversation to the closing handshake. As Walker states, “It’s about getting to the finish line in a credible way that protects you on your fundamental deal points.”
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