Business owners should start prepare for a sale of their company well in advance of starting the process which will allow for time to prepare the business in the following ways:

 

• positioning of company in the market with a clear strategy and well-defined portfolio of services/products with relevant unique selling propositions within target markets

• setting up organizational and management structures that will allow for a (phased) transition of the business to the buyer

• ensuring the corporate structure is clearly defined and ready for the sale

The business will thereby become more attractive for potential buyers and company value will increase. Those preparatory steps will also ensure a smooth transaction process reducing the risk of having to stop and restart the process.  

​We support owners in identifying and implementing the required adjustments with regards to

 

• strategy

• positioning, defining/adjusting the offering and USPs

• optimisation of organizational and management structure

• potential additions to management team

• preparing for legal and tax issues with the support of specialised lawyers and tax advisors

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In our M&A-Workshops for owners and management of companies interested in a (prospective) sale of the business, we provide insights on the process, Dos and Don’ts as well as lessons learned from M&A transactions our team has completed. Those workshops, with a limited number of participants, also allow for a sharing of experiences amongst business owners in an informal environment.

 

Our company-specific workshops are designed to prepare for a potential sale and include topics such as preparation, valuation methods, criteria to define the best buyer and other relevant M&A issues. For companies with more than one shareholder they also help ensuring a common understanding amongst all shareholders of the requirements, steps and possible cornerstones of a planned M&A transaction.

An M&A process usually takes several months to complete. There are a large a number of issues to be taken into consideration which are often unfamiliar for business owners.

These include thinking of appropriate valuation and transaction models (fixed and variable price components, measurement for meeting of targets, shareholding to be transferred in one step vs. gradually etc.), tax and legal issues and integration scenarios.

To successfully complete a transaction also requires an understanding of the value drivers, knowledge of potential buyers and the right soft skills.

We support business owners through the entire process with a high level of personal commitment and our experience from numerous transactions completed on the sell-side.

Major elements of our transaction support include

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• Analysis and discussion of company strategy, USPs and positioning

• Evaluation of a possible transaction price

• Research of and potentially pre-check of suitable buyers

• Drafting of documents to approach potential buyers (teaser/information memorandum/presentations…)

• Approaching potential buyers and checking the specific interest with regards to a potential transaction

• Managing and supporting conversations between seller and buyer as well as the negotiation process

• Support in the due diligence process

​If you are interested in discussing upcoming M&A issues please contact us at legtmann@exg-consulting.com.
 

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Support of owners/management with unsolicited offers

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Our services include supporting shareholders and management of companies that have been approached by potential buyers. If the transaction proposed in the unsolicited offer is attractive, business owners and managers need to be well prepared for conversations with the potential buyer and have an experienced negotiator/advisor by their side. Our support includes

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• preparing the relevant documents and presentations for discussions with the potential buyer

• support in structuring the transaction and valuation

• negotiation of terms (Indication of Interest / Heads of terms / Letter of Intent)

• support in the due diligence process

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Support in capital raisings

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We support technology companies with high growth potential in finding the best investor to finance next steps in growing the business. Our services include:

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• Analysis and discussion of business/revenue model

• Support in drafting the business plan including detailled financial planning

• Research and approach of potential investors

• Support in structuring and negotiating a transaction

 

EXG's associated / network partners with experience as IT entrepreneurs and senior managers can assist companies in developing the best strategies for market entry, building appropriate sales models and supporting the implementation of the plans.