We are asked this question by small and medium-sized enterprises in almost all of the mandates we initiate. They usually have topics such as the product portfolio, the competitive situation, the earnings situation, industry multipliers or similar in mind.
However, when we then reply that these are of course all very important prerequisites or framework conditions, but that the decisive factor from our point of view is the relationship of trust between the sellers and the M&A advisor in order to actually achieve the optimum result in the end, they are initially quite surprised. This is because it is not uncommon for the assessment to prevail that support in a transaction project is a standardized service that can be obtained from all providers in the same way and only differs in terms and conditions.
However, when we point out that the different economic interests and, above all, the individual emotional motivations of the shareholders, which are often spread across several (family) tribes and which ideally have to be aligned to a common goal before the start, can already represent quite complex constellations, the first insight is regularly that an appropriately experienced M&A advisor, who gains the trust of all parties involved and, if necessary, their representatives with empathy and competence, can already set the course for the later success of the project at this point.
Successful entrepreneurs have often already been approached directly by investors or their advisors, often even with indicative offers for a sale that are quite tempting at first glance. However, not getting involved straight away, but instead being well prepared to calmly sound out the market in a structured process and then identifying the best candidates in a bidding process with whom to start negotiations, requires a great deal of trust on the part of the seller(s) in the abilities of the M&A advisor to be able to manage such a process confidently, so that in the end a supposedly "one-off opportunity" is not just wasted.
The fact that such a process usually helps to achieve significantly better results for the entrepreneurs than a process with a single bidder, who usually also dominates the process formally in a rather one-sided manner, especially later when drafting the purchase agreement, often becomes clear to the sellers very quickly. However, actually taking on this process in terms of the effort, time and associated costs requires a stable basis of trust between the entrepreneur and the M&A advisor.
More answers to frequently asked questions in videos: https://albia-capital.de/services/#faq
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