We support you in selling your company
Take Over of a Sales Mandate
This service fits for owners of small and medium-sized companies who have made the decision to sell their company. Our experience shows that such an acquisition is often only possible with a significantly larger company such as large private companies or corporations. At this point, significant differences emerge, which usually work to the detriment of the medium-sized seller. The most significant difference persists in the better knowledge of M&A processes. Large companies have very often their own mergers and acquisitions departments, which continuously deal with strategic issues. The exploration of M&A strategies is often seen as an ongoing task in these companies, which manifests itself in an accumulation of M&A expert knowledge in M&A departments. Regular mergers & acquisitions activities mean that knowledge is collected that make subsequent transactions more effective. This enables large companies to assess future M&A activities more precisely.
However, it is often different for medium-sized companies. Companies in the lower and medium-sized segment do not normally have their own M&A departments because bundling M&A know-how in a separate department is unprofitable. The owner of a medium-sized company who wants to sell his company is frequently confronted with the subject of mergers & acquisitions for the first time. While mergers and acquisitions are advantageous for a larger company, they lead to a considerable disadvantage for the medium-sized company entrepreneur. For the medium-sized seller, this often results in an unsatisfactory outcome, for example, in the achieved sales proceeds.
Thus, a lack of mergers and acquisitions know-how in small and medium-sized companies can often be attested. The involvement of an external mergers and acquisitions advisor can be extremely useful for the duration of the M&A process. Many entrepreneurs do not realize how complex and time-consuming this process is. Managing directors of medium-sized companies have to take on this lengthy process in addition to their operational tasks from ongoing business operations. The result is an immense heavy burden, which often have a very negative effects on both activities.
Furthermore, completely different corporate cultures often come together. On one hand, an employed manager is the negotiator of the large corporation and on the other hand the managing owner of the medium-sized business. In the course of the negotiations, the employed manager will focus on weak points and risks of the potential purchase object as part of comprehensive company analysis. Whereas the firm owner is usually very emotionally connected to his or her company and regards it as his or her life's work. This circumstance is a great potential for conflict. In the course of the negotiations, the potential buyer will point out - in his point of view - deficiencies that justify a reduction in the purchase price. This alleged defamation of the company can provoke a considerable emotional reaction in the seller and lead to an offense, which often results in the negotiations being broken off. In this context, we can mediate and ensure an open exchange of information between both parties with tactfulness. Therefore, we relieve the owner of the medium-sized company significant burden while professionally coordinating and optimizing the mergers and acquisitions process.
Our service includes the following:
Phase 1: Preparation
Preliminary discussion and creation of a schedule
Comprehensive data collection
First rough company valuation
Selection of a suitable M&A process
Identification of suitable buyers
Candidate selection (long list)
Phase 2: Addressing the Market
Creation of information memorandum (Marketing Book)
Creation of anonymous short profile (teaser)
Preparation of a non-disclosure Agreement
Creation of a data room
Addressing potential buyers (short list)
Negotiations / consulting
Reception of inductive offers (Letter of Intent)
Selection of potential buyers
Phase 3: Examination
Preparation of the due diligence
In-depth company valuation
Structuring the transaction
Negotiations / consulting
Phase 4: Completion
Evaluation of the binding offer
Preparation of purchase agreement
Support until the transaction is concluded (signing and closing)
Every M&A process is unique. The sequence and scope of the mergers and acquisitions process depend therefore on the individual case and must be individually adapted to the circumstances. The services listed above are therefore only examples. We will make you an individual offer. Only the agreements made in the respective mandate agreement apply. Depending on the scope of the respective mergers and acquisitions project, additional consultants or experts will may be required. Their services are not part of our offer. You have to order them separately and pay for them as well.