Your personal roadmap to selling your business
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In the DACH region, over 50% of family businesses in all three countries are now heading towards business succession
(Source: DIHK studies, IFM-Bonn and KERN follow-up studies).
The pace of ageing of owners and shareholders is increasing so rapidly,
that by 2028, a good 70% of all company managers will be over 55 years old.
The challenge: With the retirement of the baby boomers, there is a dramatic slump in demographic succession. There is not only a lack of employees at all levels, but also of founders and successors as company leaders.
And the economic climate is becoming harsher and tends to be more unpleasant. Gradually, but visibly.
Secure your assets, safeguard your employees’ jobs and start your succession project!
If not now, when?
The right time -
Your company sale requires the highest level of professionalism and discretion at the same time. Trust the Statements from our customers or have a look at one of our National cooperation an. Upon request, we will be happy to name specific contact persons who can give you a personal statement on our performance. Check our values for cooperation.
References for your safety -
You explain your company and its history to us and tell us the basis of your business concept and the goals of your succession planning.
The start of our cooperation -
If known, you will provide us with the necessary insider information about the industry and the market for marketing purposes. We probably already know your industry and have experience with the relevant target buyer groups. We will liaise with you on this.
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We gain an overview of the sector, the market conditions and future market developments in relation to the potential buyer target groups. With over 500,000 verified investor profiles, we have one of the fastest ways to access the market and can make an anonymous selection with you in advance using the longlist and shortlist procedure.
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We review your documents and discuss with you the next steps of a holistic sales strategy (stumbling blocks for a sale, measures for preparation, individual search procedure or bidding procedure, data preparation for a later buyer’s examination, definition of the scope of the sale, etc.) What should be sold, what should not be sold?
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Optionally, we start with a joint fitness check on the saleability or transferability of your business (separate offer if necessary).
With over 300 questions, you will receive an in-depth analysis of your ACTUAL situation and we will review the status quo with you in the areas of planning and preparation, provision and asset situation, succession options, and law,
Taxes and business administration.Extended you will receive an assessment from us
to the value of your company and to the possible market price.A protocol gives you the basis for assessing
of your company fitness in matters of business succession.
On request, you will also receive specific recommendations for possible actions. It may be that you now need time to optimise your preparations. -
In this step follows for you the detailed assessment of your company.
As a rule, we work according to the capitalised earnings value method in the classification according to the IDWS1 (Institut der Deutschen Wirtschaftsprüfer) method.
The basis is the annual financial statements of the last 3 business years. These are adjusted for extraordinary expenses or income. Likewise, a realistic assessment of costs, wages and salaries or tax optimisation is carried out.
In the case of several companies, it is advisable to consolidate the figures (separate service) for the sake of compact clarity.
On this basis, planning figures for the future, economic development of at least 3 to 5 years are prepared. If you wish, we can support you in this important task of determining value.
The assumptions of the target figures should be justifiable and take into account the upcoming succession.
In this process, you receive a draft in advance, which we then discuss and approve with you for a final version. Of course, we work closely with your tax advisor in this important analysis and determination of the company value.
The determination of a company’s value is not only an important basis for decision-making for buyers, but is also actually almost indispensable for banks and financing partners in the context of a transaction.
Your company’s performance will thus be comprehensible and the perspective of the target figures will justify the important future of an acquirer.
For smaller companies (size of less than 1 million euros/CHF transaction value), the Business valuation may also be omitted or implemented in a different standard. We will select the optimum procedure for you.
Alternatively, the summarised key figures from the past are then shown in a short form. Supplemented by the aforementioned target figures and supplemented with the multiple method, for example.
However, not on the basis of the recognised income capitalisation approach according to IDWS1.For certain business models there is also the Substance value method or AWH method.
You will receive the final version in two print versions (bound) and as a digital file in PDF format.
Valuation and pricing options -
We prepare your data in a form and structure suitable for discussion (preparation analogous to the content of your company’s future exposé ? Checklist to support KERN). Your potential successors should really whet their appetite when they read it later. Of course, only those interested parties who have been checked by us in advance and approved by you will receive the exposé.
Sales documents and distribution -
We work with you to develop arguments for the further sales strategy and jointly check the sustainability of the arguments.
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We discuss variants of effective sales strategies and determine the strategies that ultimately appear promising together with you (individual search procedure or bidding procedure). At this point, important questions of tax and legal implications are also weighed up in individual cases.
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We prepare a detailed information memorandum (exposé), if necessary also in foreign languages of your choice or necessity of the target group (at cost). Your detailed company evaluation is integrated into this. Depending on the market situation (absolute certainty about the competition), we work with an upstream, neutral exposé as a “safety buffer”. This way, no competitor on the market can recognise that you are on the way to securing succession with your company.
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We discuss a ‘deal design’ with variants for you and potential buyers.
What can different scenarios look like for different buyers? What is the legal and tax significance and impact?
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We define the primary and secondary buyer groups and, if necessary, compile a list of all potentially interested parties. Each interested party is checked by us in advance or as part of an enquiry.
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We create an anonymised and completely neutral short profile (also known as a teaser) of your company (key data and outstanding plus points) to anonymously clarify the basic interest of the addressees. This is the first, completely anonymous contact with potential buyers.
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All documents are checked and explicitly released by you. This way you know exactly what others can find out about your company and always remain the decision-maker of the process at this point.
In parallel, we already inform you about possible audit procedures of a transferee and prepare you with detailed checklists for a professional data presentation.
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We contact the potential buyers in writing and, if necessary, by telephone and provide initial anonymous data. Extended by individual or telephone interviews.
The needle in the haystack -
We are intensifying our contacts with partners, banks and several thousand suitable MBI candidates as well as private equity companies. Our databases alone contain over 500,000 verified investor profiles. You will always receive the CVs or other company details of investors before the detailed exposé is handed over. We will only deepen the exchange of information with your approval. With this security rule, no data about your company can be unintentionally disclosed to third parties.
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Upon confirmation of interest, we will arrange for the necessary non-disclosure agreement and transmit further company data.
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On request, we will anonymously list your company on the largest and most reliable company exchanges in Germany and Europe.
We have selectively recorded over half a million specific prospective buyers in our direct network alone. Buyers are constantly looking for investment opportunities in the national and international environment.
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We select and qualify interested parties for contract negotiations. Each interested party is checked for sustained interest within a set time frame. In the process, we also pay particular attention to the seriousness of the potential acquirers. We separate the wheat from the chaff for you.
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We arrange appointments with the relevant interested parties, coordinate the company presentation and, if necessary, the submission of offers by the interested parties, which we subsequently compare and, if necessary, concretise within the framework of a competition.
The negotiations -
We coordinate and moderate the joint talks, ensure the necessary flow of information and the documentation of the negotiation steps. This work often resembles that of an attentive “interpreter”. Verbally expressed expectations, agreements and wishes can quickly become a “dealbreaker” if they are not precisely translated, checked and documented in writing at an early stage.
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We accompany the decision-making process on both sides by discussing the possible ‘deal design’ and assessing it from a commercial, legal and tax perspective (involving selected experts from our network or your desired specialists).
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We structure the questions from interested parties and coordinate the answers with you in detail.
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We compare the interested parties/offers and advise and accompany you in the negotiation tactics.
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We accompany the further process up to the conclusion of the purchase agreement with the involvement of legal and tax experts with M&A experience. Of course, you are free to choose them and instruct the lawyer/tax advisor or auditor of your choice directly. From our tested network or your personal environment.
Preliminary contract, inspection and purchase contract -
We draw up a letter of intent or a preliminary contract with these experts.
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We accompany the due diligence reviews (review of all documents by the buyer) and moderate the final negotiations.
The effort involved in such a purchase review should not be underestimated, as even at this stage of the sales process, work is usually carried out in strict confidence and undercover. That is why we prepare you for the upcoming questions and examination processes at a very early stage. And when an investor brings out the “big silverware” for this stage of the process, you should certainly be able to handle it professionally on your side with us.
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We prepare a draft of the purchase contract with the aforementioned experts and support you until the legally binding signatures are provided.
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If you wish, we will accompany you during the implementation of the payment and handover.
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We are also available to advise on questions after the handover. These can be, for example, integration processes into a new structure. The updating of a company mission statement or team development in the context of the handover. Whatever your needs as a transferor might be - ask us - we have a national and international network with experienced experts in all disciplines of a company succession.
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You have successfully achieved your goal ? Your succession for your company(ies) is secured. You have transferred an important value component of your assets into your future. You have succeeded in one of the greatest tasks and challenges in entrepreneurial life!
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Congratulations!
Participate now free of charge in the webinar “Selling a business without risk and loss of value”.
In this special webinar, you will learn in just over 80 minutes how to find the right buyer for your company safely, discreetly and at the best price.