Jul 16, 2014|
Automatically Generated Transcript (may not be 100% accurate)
We are zeroing in this morning on the process of selling the Buffalo Bills are in studio guest this morning is right Cunningham he's in the state -- trust expert and Riley thank you for coming and less time we talked with a couple of months ago. And we're just wondering when this morning -- in the sale process one writer from buffalo as business first used the baseball analogy saying this is probably the first inning. Would you agree. Yeah it's something like I mean at this point I think there will be in both of a couple things last I think Durbin potentially sixty or seventy. Groups or something like -- are interested. At this point the folks who are representing the bills there for financial folks and we folks. Or partially there's people on base we see you know who is who whose center stood EL lots of people are bit who's for real terms of who has the wherewithal to. By the team and you can. And deal with the various -- requirements that are from what I understand some want -- onerous. And I'm from their murder -- smaller group of five. If there are sixty or more. Prospective buyers. Who have access to this initial sales book now this initial sales book is they're calling it. That's a prospective buyers chance to review what seems worth looking at a corporation which -- over a billion dollars I mean. How much paperwork user when they say book our book. All book is it's just simply going to be something that's usually put together. Our financial advisor usually an investment bank that says. You know these businesses the company were offering this is the company's best points this is that this is whatever it may be. I've seen in the smallest ten or fifteen pages I send them his biggest 6200. Pages. Of that information that's just going to be sort of palm. Against the easiest way to put -- -- -- missed. Simple -- this is simply a pamphlet of this is kind of what the bills organization is. There may be sort of a statement of some of the revenue some of the expenses some of those things. That's just there's not a whole lot you can -- from manages this is a book. It's put out there by the spokesman price buyers the -- is the more people we're getting interest stood. The higher the price goes. Normally the people put out the book with a financial people. Operate on I don't wanna say it's a commission but it basically is they end up with something like. Between more than 4% of the transaction. Or more depending on whatever they're deal -- with the Buffalo Bills. And what that'll happen is once they have the book it goes out to these people people who were interest Adobe lots of people are interested they're equally ours. Whatever they said sixty year or whatever. But at the end of the day in or there's people from him the wherewithal to you know write a check or were obtain financing for whatever the -- number becomes. What is the next step then for the folks that have the spoke to they have to do declare some kind of intent. Well they do that but what they're gonna do probably is the people who were going to be interest in her murder expressed interest. Usually the financial performance with a financial formal formal combination of both are gonna hear those folks being home to a group of people to. Maybe seven maybe ten and say we're the people who were really interested are you the people who were really interested you know and at some point once they get a group of folks who they know in there are clearly interest and clear we have the wherewithal to do this we will meet. I don't know what the league requirements are and there's lots of them. But whatever those are adequately meet those the next step is and that and whereas the -- -- -- -- -- that the glossy of you know the pretty -- Garcia of it. The dale and dirty is going to be what this going to be the documents that are put -- what they called diligence data room usually. And what that is is going to be financial statements contracts. Probably for business of this size. You know. A pile of paper -- hawk. And whoever generally the buyer in the cellar are gonna they're they're law firms are gonna go through and review this and see what's there are. At at that point there's either going to be a bidding process war. Something that you know and whomever becomes the person who creates the highest offer has been going to enter into a contract with his people want and whatever. But in order to get to the point where you have a diligence room in your disclosing documents and things whoever that -- people that are the last maybe couple people who didn't that they -- let's see some of these things. Are gonna assignment probably very large and probably very. Complex non disclosure agreement which is that simply there's arguments that only Rossi collided in the public.