Do I have a buyer?
In order to sell a company, three circumstances should coincide. Firstly, the products or services offered by the company must have a future. A company with a future will find a buyer.
Secondly, you must be prepared to sell the company at a price very near the theoretical market value. Finding a suitable buyer and negotiating properly may make it possible to exceed this theoretical value. However, no buyer will make a significant investment without a prior, intense, negotiation process. Rationality prevails.
Finally, you must really be prepared to sell the company. Only the business owner knows if this is truly the case. If you are unconvinced, it is better not to waste resources.
It is useful to reflect on the advantages and disadvantages before commencing the process, with partners and family members, but, first and foremost, with yourself. And talk to us, we will attempt to guide you.
How much is my company worth
The value of the company is determined by its foreseeable future, i.e. its ability to generate profits in the short and medium term. In certain cases, the value of certain assets, such as property, should be added to this amount.
A first essential step when selling shares is to establish the market value of the company using the discounted cash flow method. A well grounded valuation, combined with experience and knowledge, allows better negotiation and, consequently, a better price to be obtained in the sale of the company.
In any event, a business owner considering selling their company should know its theoretical market value in order to ensure they are fully informed when they decide to commence the sale process.
Who could be my buyer
There are different alternatives to take into account when a business owner considers the benefits of selling their company. The most typical are:
• A national or foreign competitor is the first option to consider;
• A company in a complimentary sector that is looking to combine diversification with taking advantage of certain synergies;
• Private equity, expansion capital or family offices with the financial and, where applicable, human resources to make medium-term investments in a very wide range of sectors;
• Private individuals with experience and economic resources looking to become business owners in sectors where they are specialists; performing a management buy-in (MBI);
• Your management team in a management buyout (MBO), when certain circumstances are in place, as discussed in the Management Buyout section.
How will the sale process affect the day-to-day of the company?
In no event should the sale affect the daily running of the company. This will be achieved if the business owner remains completely focused on managing and controlling their company, rather than focusing on the sales process. To this end, M&A professionals take full responsibility for the process, with complete dedication, based on total confidentiality and discretion.
Our personalised method based on customer service, attracting possible buyers, obtaining and compiling information and intensively monitoring the entire process requires dedication and methodology that only a completely specialist company, with experienced managers, can perform.
Selling a business is an event of enormous economic and personal significance for its owners. It is probably the most crucial decision in the business career of a person or family. Only years of experience and knowledge can enable someone to collaborate with a business owner in these circumstances.