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Company Buying and Selling Services

The services offered by M&A Fusiones y Adquisiciones are aimed at business owners who want to sell their company because of a lack of succession or the pressure of an increasingly competitive environment, at companies that want to bring in a new partner (venture capital, growth capital, family office or strategic partner) to take on a business expansion project, at executives who intend to buy a company through a management buyout or buy-in, and/or at companies that want to grow by acquiring complementary businesses.

 

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What do we offer?

Selling a company

Selling a company can be the best way to close a chapter at the helm of a business, since it turns business assets into cash while ensuring the continuity of operations and jobs.

It is therefore an option to consider especially when:

  • The owner has no family succession.
  • The company has favorable prospects but lacks the financial resources to develop them.
  • The owner feels the company is not prepared for such a competitive and global environment.
  • The owner feels they have achieved their goals, or no longer has the motivation to stay at the head of the company.
  • The company suffers from disagreements between shareholders, which can seriously damage its value.

Bringing in partners

In various situations, bringing in a minority partner can be advisable.

This is the case when the aim is to:

  • Develop a new strategic line, whether a product or a geographic market, or take advantage of an unexpected opportunity. In these cases, the company may need financial, commercial, production or technological resources.
  • Resolve differences of opinion between shareholders, with the new partner contributing rationality, sound governance and experience.
  • Replace a shareholder who wishes to sell their stake.

Venture Capital / Private Equity

A financial partner provides liquidity through a capital increase, making it possible to undertake the investments required: expanding the factory, acquiring new machinery, commercial expansion, working capital financing, among others.

In addition, a financial partner can help with:

  • Access to financial markets on optimal terms.
  • Access to technology or commercial partners with a global reach.
  • Sound management and governance of the company, more necessary than ever during an expansion phase.
  • An increase in the value of the company should a sale be considered in the future.

Management Buy-Out (MBO)

Sometimes the owner has the best buyer for the company very close at hand: their own management team. This is what is known as a buyout, the purchase of a company by its senior executives.

For it to be completed successfully, the following circumstances must be met:

  • The managers must have the ability and the willingness to take on the role of business owners.
  • The managers must be able to finance a part of the acquisition, even a very small one.
  • A plan for the future must be drawn up that generates the confidence needed for traditional banks or venture capital firms to finance the full cost of the transaction.

Management Buy-In (MBI)

In this case the company is acquired by executives from outside it, and circumstances similar to those described for a Management Buyout must be present.

Buying a company

Buying a company is the ideal option when pursuing any of the following objectives:

  • Gain greater presence and relevance in the same sector and geographic area in which the company already operates.
  • Quickly establish a presence in new geographic markets.
  • Diversify into complementary sectors, taking advantage of the synergies arising from shared departments or central services.
  • Consolidate the market position and, as a result, increase the company’s value ahead of a later sale.

Company valuation

Before starting the search for a buyer or a minority partner, it is advisable to determine the market value of the company. This estimate is also necessary for share transactions between partners, as well as in various circumstances that may lead to share exchanges. The FAQs section, How much is my company worth?, looks at this question in more depth.

Company mergers

One option that may be suitable for reaching greater scale and becoming more competitive, thanks to revenue and/or cost synergies, is a merger with another company that is complementary in market and/or product. First, the right partner must be identified and then an agreement negotiated with them covering the valuation of the respective companies and the arrangements affecting the ownership, governance and management of the resulting company.

How can we help you?

Contact our team to learn more about how we can help you at the most important moment of your life with your company.

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