What else will change in the M&A market?
The determination of purchase prices and the drafting of contracts will increasingly be structured in a buyer-friendly way. We will probably see more so-called closing accounts, which means that the final purchase price can only be quantified in the future (after the signing of the purchase agreement). The seller-friendly ‘locked box’ mechanism, where the time of the economic transition to the signing of the purchase agreement is chosen in the past, is likely to decline. The risk thus spills over to the seller.
Likewise, we will see significantly more of so-called earn-out clauses, i.e. the linking of partial payments of the purchase price to the achievement of certain target figures of the company, such as sales, EBIT, etc.
Basics webinar presented by Nils Koerber
Company sale (M&A) without risk and loss of value
And/or so-called MAC clauses, which are intended to protect the buyer in the phase between signing (signing of the purchase agreement) and closing (closing of the transaction) from significant performance losses of the company.
We at KERN remain positive
Corona winners will of course have it easier. But even there, they will be watching closely, because oversaturated markets ? we already had it from the webcams ? can be a challenge even for the best business model in the near future.
All in all, we at KERN remain positive and the successful results of the last few weeks give us reason not to deviate from this.
Let us examine together where you stand with your concerns and what needs to be done when, specifically in your case. I would like to invite you to do this at the end of this article.
All the best for you ? Whatever you are up to!
Image: Fotolia.com
TIPS for further reading:
Corona, Company Sale & Now Part 1
Selling construction companies - is it worth it in the construction boom?
Selling a company in the IT industry
Is business succession an opportunity for founders?
The cooperative model - when employees follow in the footsteps of the company founders!
