Initiating the Sale Process
Once a shareholder or entrepreneur decides to explore selling the company, the process begins. We engage with the shareholder(s) to understand the rationale behind the decision. Reasons for selling can vary, including market developments that hinder competition, regulatory changes, internationalization, increased scales of suppliers and competitors, technological advancements, or even personal reasons such as diminished energy or entrepreneurial spirit.
Stages of the Divestiture Process
Entrepreneurs often seek our expertise when contemplating the sale of their company. Drawing on our years of experience, we accurately evaluate the viability of a sale. We know how to approach potential buyers effectively and with the right information. Our extensive network of strategic and financial buyers ensures a broad reach. Confidentiality is paramount in this process.
Before approaching potential buyers, we ensure thorough preparation. We start by analyzing all available information to create a comprehensive information memorandum. We also compile a detailed overview of all potential buyers. The actual sale process then begins.
Our Team-Based Approach
We operate entirely digitally and maintain short communication channels. Our goal is to reach an agreement with the carefully selected buyer on key business terms. With our experience in negotiations and proven methodologies, we increase the likelihood of a successful sale.
Enhancing Market Appeal
Successfully selling a business depends on numerous factors and often requires further preparation to enhance market appeal. Today’s buyers, both strategic and financial, conduct very thorough due diligence to mitigate risks. This scrutiny can result in failed acquisition processes if companies are not fully prepared for sale. Common issues include not meeting financial projections, lacking necessary investments, or having a weak management team, which can lead to reduced sale prices or even making the business unsellable. We advocate for thorough and prompt preparation to ensure the best possible sale outcome and maximize returns.
Preparing for the Divestiture Process
Preparation involves a comprehensive analysis of your company’s strengths, risks, opportunities, and limitations. We have developed a Quick Scan to swiftly and effectively identify areas of strong and weak performance. Addressing potential risks early in the process helps mitigate threats to the divestiture. Following the analysis, we can develop a tailored improvement plan, which may include enhancing management structures, diversifying customer and supplier bases, properly documenting agreements, and bolstering financial results and cash flow.
Benefits of the Quick Scan
Implementing an improvement plan typically requires several months to half a year, ultimately enhancing the company’s marketability. Detailed preparation not only accelerates the sales process but also increases the likelihood of success. The investment in preparation is often recouped through higher sale proceeds and a faster transaction time.
Additionally, during this period, a sales process plan can be developed, identifying attractive buyers, evaluating the feasibility of a tender procedure, and determining what information will strengthen the negotiating position.