Time and again, we see successful entrepreneurs being approached directly and without any reference, "out of the blue" so to speak, as to whether they would be interested in selling their company. Very often, these are specialized M&A advisors who are specifically looking for suitable investment opportunities on behalf of investors. However, it is also not uncommon for private equity investors themselves to systematically search the market for existing potential with their own research staff.
Entrepreneurs who have not yet considered selling their business or for whom this is absolutely out of the question may feel confirmed in their entrepreneurial activities or even a little flattered by such inquiries, but usually ignore them. For entrepreneurs, on the other hand, who are already thinking about selling their own company - perhaps only very quietly - such inquiries are often a very welcome opportunity to at least engage in further discussions.
Initially, there is nothing wrong with this if the entrepreneur has very clear ideas about how he would be prepared to sell his company and would pursue them consistently, in one direction or the other if necessary. However, the reality that we experience is usually different.
To put it positively: The sale of a successful company can lead to a pleasing conclusion with clearly developed objectives, extensive systematic preparation, great attention on the part of the entrepreneur - in addition to the operational tasks of day-to-day business, which must continue unabated - absolute discretion internally and externally, negotiating skills, strength and patience over many months and, last but not least, qualified support from external advisors, in particular M&A advisors, M&A lawyers and M&A tax advisors, which not only pays off materially for the entrepreneur, but also provides the entire company and the acquirer with a sustainably successful future.
However, it is crucial that concise documentation and a suitable approach to selected candidates succeed in attracting several capable potential buyers, both financial investors and strategists, for a bidding process that is actively managed by the seller and reflected in their formal products, such as the purchase agreement at the end. And it is not only for capacity reasons that external support is indispensable. After all, only someone who is familiar with the entrepreneur can effectively represent the entrepreneur's position in the negotiations, because the entrepreneur can use a targeted decision-making process to maintain or even improve it.
Please feel free to contact us at any time, confidentially and without obligation, if you are interested in further details on a structured sales process.
We are asked this question by small and medium-sized companies in almost all of the mandates we initiate. In most cases, they have topics such as the product portfolio, ...
We are asked this question by small and medium-sized companies in almost all of the mandates we initiate. In most cases, they have topics such as the product portfolio, ...
