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FAQs

Frequently asked questions about mergers and acquisitions of companies

Selling my business: do I have a buyer?

To sell a company successfully, three conditions must be met:

  1. First, the company’s products or services must have a future.
  2. Second, you must be willing to sell the company for a value close to the theoretical market value resulting from the prior valuation. However, if the ideal buyer is identified and the negotiation goes well, this theoretical value can be exceeded.
  3. Finally, you must truly be willing to sell the company. Only the owner knows whether they are really convinced. The decision must be made after weighing the advantages and drawbacks of such a momentous transaction.

How much is my company worth? Calculating the value of a company

How do you value a company? The value of a company is determined by its foreseeable future, its ability to generate profits in the medium and long term. In certain cases, the value of specific assets, such as real estate or excess cash, must be added to that value.

An essential first step in a process of selling shares is to define the company’s market value using the discounted future cash flow method. A well-founded valuation, backed by experience and knowledge, allows for better negotiation and, as a result, a better price for the sale of the company.

Selling a company: who can be my buyer?

There are several alternatives to consider when a business owner is thinking of selling their company. For example:

  • A company in the same sector that wants to increase its scale and, where applicable, enter new geographic markets.
  • A company in a complementary sector that wants to diversify and, in turn, achieve certain synergies.
  • A venture capital, growth capital or family office firm with financial and, where applicable, human resources to invest in companies with an attractive future project.
  • The management team itself, as described in the Management Buyout section.
    Individuals who have the financial resources and management experience and wish to become business owners. This would be the case of a Management Buy-In.

Can the buying and selling process affect the day-to-day running of the company?

The sale must not, under any circumstances, harm the daily running of the company. This will be achieved if the owner remains fully focused on governing the company and oversees, but does not manage, the sale process. To that end, our professionals take full responsibility for the process, with total dedication and in the strictest confidentiality and discretion.

Our personalized approach to client service, to reaching out to potential buyers, to gathering and preparing information, and to closely following every phase of the process can only be delivered by a fully specialized firm with executives who have solid experience.

Selling a company carries enormous economic and human significance. It is probably the most important decision in a business owner’s life. Only the experience and knowledge gained over the years allow us to work alongside the owner in such significant circumstances.

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