In nearly all initial client meetings, small and medium-sized business owners ask us this question. Most often, they have topics such as the product portfolio, the competitive landscape, the earnings situation, industry multiples, and the like on their minds.
However, when we respond that while these are, of course, all very important prerequisites or framework conditions, the decisive factor from our perspective is the #relationship of trust between the sellers and the M&A advisor—which is essential for ultimately achieving the best possible outcome—they are initially quite surprised. This is because it’s not uncommon for people to assume that support in a transaction project is a standardized service available equally from all providers, differing only in terms of conditions.
However, when we point out that the differing economic interests and, above all, the individual emotional motivations of the shareholders—who are often spread across multiple (family) lines— and which ideally should be aligned toward a common goal even before the process begins—can present quite complex constellations, the first insight that regularly emerges is that an appropriately experienced M&A advisor, who earns the trust of all parties involved—and, where applicable, their representatives—through empathy and competence, can set the course for the project’s future success right from the start.
By this point, successful entrepreneurs have often already been approached directly by investors or their advisors—and not infrequently with indicative offers for a sale that seem quite tempting at first glance. However, rather than agreeing to such an offer immediately, it is essential to take the time to carefully assess the market through a well-prepared, structured process and then, through a bidding process, identify the best candidates with whom to begin negotiations. requires a great deal of trust on the part of the seller(s) in the M&A advisor’s ability to manage such a process confidently, so that in the end, a supposedly “once-in-a-lifetime opportunity” is not simply squandered.
Sellers often realize very quickly that such a process generally helps achieve significantly better results for entrepreneurs than a process involving a single bidder, who usually ends up dominating the process in a formally one-sided manner—particularly later on during the drafting of the purchase agreement. However, actually committing to this process—given the effort, time, and associated costs involved—requires a solid foundation of trust between the business owner and the M&A advisor.
You can find additional answers to frequently asked questions in videos here.
