This is Pete Moore at Integrity Square. We are in month three of Project Willow selling 20 health clubs to a strategic or a financial buyer. We might go out to a hundred different groups and we might have, let's say 15 signed non disclosure agreements or
NDAs. They will get the confidential information memo, they will get the workbook and they will get some other material documents, but they won't be getting leases, they won't be getting membership agreements and they won't be getting any other sensitive data. Now the banker Integrity Square will send out something called a bid instruction letter. That bid instruction letter will ask for I.O.I.S, i.O.I. indications of interest. Which is kind of a light way of saying, hey, tell
me if you're interested. Give me a range of what you think this company is worth that you would pay, let's say anywhere between five to six times cash flow or 50 to 60 million. I'm not going to pin you down on an exact number. I need to know how serious you are about doing this. I need to make sure you have the money to do it. I also want to know who's working on the deal, if you've hired any accountants or legal team to get into the next level of diligence and along with our process.
And then what I'm also going to do is ask you what type of constraints or contingencies would have to happen in order for you to do this deal. Therefore, I need to know if you have $50 to $60 million in equity that you can write a check. I need to know if you have to borrow money and get dent financing and that would be a contingency or a deal factor that
would be part of your bid to sell the company. If I'm representing a seller, I want certainty of close and I only want people with groups that are active and ready to do a deal.