Selling a company
The chance of selling your company for a high price increases when all relevant matters have been carefully thought through. The price and conditions are not only determined by strategic choices from the past, but also by the type of buyer, the timing, the number of buyers and the negotiation process.
A thorough analysis in the form of a valuation is the starting point of every sell-side process. Comparable companies in the same market with the same activities generating the same profit, can have completely different company values due to different type of clients, products, markets or risks. This is why every process requires an extensive analysis through a customized company
Before starting a sell-side process, the entrepreneur’s priorities have to be clear. What will the entrepreneur’s role be after the transaction and what considerations must be taken into account when deciding upon a price and other conditions?
After the valuation, we will make an analysis of potential buyers in the market. Who are they? Competitors, suppliers, customers, children, current management, private equity, or a management buy-in? Potential buyers are arranged according to preference. We determine the approach of the sell-side process in an early stage. For example, will negotiations be on an exclusive basis or will they take place by ‘controlled auction’?
Timing is an important factor in order to achieve a high company value and a high selling price. Of course, it is important for a company to show stable results during previous years. Even better are innovations that are now beginning to pay off, offering potential buyers an attractive perspective. Timing is also important when market developments are slowing down or speeding up during the process.