Augeo Ventures - fuzje i przejęcia firm. Doradztwo strategiczne.

Selling a Business

Are you considering selling your business? Have you already  decided to sell your company?

The typical reasons for selling a business are:

  • Lack of natural succession in the owner’s family,
  • Financial difficulties and need of external financing,
  • Intention to realize capital gains on the capital invested in a business.

Modes of selling your company:

  • sale to a strategic investor – the buyer is a competitor or a company operating in a similar industry
  • sale to a financial investor (private equity fund, private investors) – the strategy of a financial investors typically is to invest in growing companies, supervising their development and divest after 3 – 5 years (either through sale to the other investors or through an IPO on the Warsaw Stock Exchange) or realize profits on sophisticated refinancing and recapitalization transactions
  • IPO on the stock market (Warsaw Stock Exchange, NewConnect) – initial public offering and selling the shares to the individual and institutional investors
  • sale in a Management Buy-Out (MBO) – acquisition of the company’s shares by the current management team, typically with the support of investors and bank debt

What investors will look at when buying your business:

  • industry in which the company operates and the degree of competitiveness of its products and services;
  • human resources within the company and their potential;
  • financial results;
  • organizational structure;
  • competences and experience of management team;
  • growth potential;
  • potential to generate positive cash flow in the future.

How to prepare for selling your business:

1. Estimate the intrinsic company value – only after assessing how much the business is worth to the investor, you can effectively negotiate the terms of the transaction.

2. Ensure there is order in company legal and financial documents – this will show that the company is well-organized and secure in terms of financial performance.

3. Prepare to clarify difficult issues related to your business – each company has had difficult times and issues it would rather not come back to; however, openly presenting them can help you gain trust of potential investors.

4. Present a clear growth strategy – secure strategy for the future development of the company can increase confidence and willingness to pay higher prices for the shares.

Learn more about how we can help you sell your business at a better price!