Selling companies – buying – how does it work?
Selling a company – Are you looking for a buyer for your company? A new, rapidly growing trend is the purchase or sale of companies to expand their own know-how or existing technologies and services. There can be many reasons to sell a company. We have put together some answers to your questions here.
What are the processes like? Where can you find the best advice?
Consulting companies specialize in the sale and purchase of entire companies. So there are two perspectives here. The Sell and Bye sites. Startups, investors, business consultants and interested parties meet supply and demand in the area of corporate succession. Another area is participation, a company takeover, a
Company succession or, for example, a merger.
How do you find the best method?
In the course of such a process, many questions arise that are implemented and answered as part of M&A advice.
FREQUENTLY ASKED QUESTIONS
FAQ about selling companies and more:
1. Finances – sales contracts –
The correct company valuation brings the seller and buyer together and ensures satisfaction on both sides. Of course, an investor is always interested in increasing his investments over the long term. In any case, it is certain that in this process the financial interests are the trigger for a company purchase or sale. The content of the actual purchase contract is then very complex and should be designed from the perspective of a tax advisor and lawyer.
Tip: Make sure the sales decision is final. If possible, do not leave a back door open for reverse processing. Even if you as an entrepreneur are still emotionally inclined to continue running the company. For example as an interim manager or external consultant.
2. Personnel – Management – properly reorganizing the management
The management to be filled or reorganized. Especially in the start-up phase of a company succession or takeover, you should trust this issue in the hands of a personnel consultancy that specializes in it. The HR experts support this extensive decision on the supervisory boards or advisory boards of medium-sized companies.
The integration of the corresponding new employees also offers great added value. Of course, it is extremely important to convince the individual employees of the company takeover and to integrate them quickly.
Tip: Concentrate on the financial aspects of company succession and leave the compilation of the new management to a personnel consultancy. Similar to, for example, the Bundesliga, you should be able to separate managers, coaches and teams.
3. How much is the company or company really worth?
First of all, it is important to use the figures in a company valuation. A review of the business evaluations enables a deep look into the financial situation of the company offered. As a rule, the figures from the past three years are used. The result shows the reported profit of a company. These figures are then incorporated into the company synopsis.
Tip: The company synopsis should be designed so that it arouses interest from the buyer or investor. At best, at first in a short overview with the hard facts and then with further details in which a statement is made on every important point.
5. How it works – do you finance a company takeover?
Credit options and funding, for example in the case of a company succession, must be clarified in the consultations with a financial expert. Financing should be clear and sustainable, so that the further business years are secured.
Tip: For startups or new entrepreneurs, asking the KFW-Bank makes sense. With a manageable effort and a coherent business model, which is given with a takeover, a new entrepreneur can finance up to 20,000 euros cheaply.
6. How does the purchase of a company work?
Anyone who buys a GmbH or similar company form has to take a lot of tax considerations into account. The handover must be professional in every respect. Of course, the new management also has a responsibility towards that of the existing workforce. A handshake is definitely not enough and probably belongs more in the area of a dream. Here, too, it makes sense to find out more and, if possible, involve M&A specialists.
7. Do everything independently – or do you want advice?
If you want to buy a company, you take a calculated risk. In order to make this process really successful, it is advisable to commission a management consultancy to do it. Here the control of the processes can be coordinated, for example, by an interim manager.
Tip: In some cases, restructuring the company can improve the overall existing financial situation and sales situation. In this way, a company can be made “fit” for the sale or participation of a company.
Summary and Outlook
Use and find a business consultancy you trust. We would be happy to help you with your corporate succession, especially for small and medium-sized companies.
The sell and the bye site: Each party has a high financial interest in a takeover or company succession. Among other things, due to demographic change, there will be a high demand in this area, especially for medium-sized companies. Germany still has a good reputation abroad. Economic stability and a good legal basis make German companies interesting for foreign companies. The term “Made in Germany” was actually politically planned as a negative flagship, but has developed into an absolute hit over the years.