We advise companies and business owners selling privately owned businesses.
Business owners used to be quite resistant to the idea of selling their founded business, and many do not even think of their business a sellable commodity. However, with a tougher business environment faced by small-medium size operations, rising labour costs and severe technological competition, individual owners or even management teams are showing stronger motive to sell their businesses. Some common situations prompt this change of attitude:
- Aging of owners and shareholders (descendants not interested)
- Severe business competition suppresses profit margins
- Limited growth unless heavy cash/capital investment
- Managing risk of business portfolio
- Lifestyle change of owners/shareholders
- Cultural change – selling business is a pride rather than losing face
We work with clients in the deal origination and provide all sourcing support: starting with a company brief to create company profiles, three- and five-year plans, earnings/EBIDTA outlook, profitability across products and customer base, preliminary valuation, and plans of actions all with the aim to transform the company into a good value property in the M&A market. Any potential roadblocks to the valuation are identified before resources are deployed to unproductive deals.
We will also be with you in every step of subsequent stages: potential acquirers research, target screening, prospecting names and interviews, offers assessment, due diligence and negotiation.
For such a complex process which can be stressful and emotional, we will hand holding our clients throughout all stages to ensure that all levels of business owners, board members and top management are well versed in progress which is in no jeopardization of their needs and preferences.
Following a successful business sale, there are immediate challenges that need to be addressed such as business integration, employees and customers management and administration of earn out terms. We bring a thorough and highly customized approach to the post-selling process that focuses on delivering win-win values for all parties concerned.
