R.K. Hammer’s experience is 172 card deals and valuation appraisals over 35 years, throughout North American and in bank and card clients from over 50 other countries on 6 continents. Absent unusual circumstances such as hostile takeovers/unfriendly transactions, Card Deals usually go through similar stages and predictable timelines. Here are some highlights of average time frames for the normal card portfolio auction process and protocols…in case you, your CEO, or the Board wondered:
Average time to build a book of prospective Buyers and get prior NDA’s done: 5 days
Average time to create the Offering Memorandum and supporting Data docs: 10 days
Average time for Preliminary Bids to arrive and be examined by your Advisor: 10 days
Average time for Due Diligence on-site for each Finalist Bidder’s version: 1-2 days
Average time for drafting/redrafting Sale and Purchase Agreements: 14 days
(Average time for Regulatory approvals: Depends, TBD)
Average time for all stages to Closing: 30 – 45 days without Regulatory approval required
Fastest deal ever done in our experience, start to Closing: 21 calendar days
Average Post-Closing “Interim Period” to Data Conversion of the Buyer: 128 days.