Sell-Side Advice (Company Divestitures)
The sale of a company or a business is a time-consuming and complex process. M&A processes are usually structured as a limited auction with multiple bidders. This requires excellent preparation and professional execution in order to achieve a successful transaction and maximum value for the owner.
A thorough preparation is the key element of a successful M&A process. This includes the definition of a sales strategy, formulation of an attractive and verifiable investment story, development or adaption of a multi-year financial (business) plan, preparation of an information memorandum as well as international research and analysis of potential buyers (long list/ short list).
After the preparation has been completed, the execution phase is started with anonymous approach of potential buyers in order to pre-check their M&A strategies, screening of serious interest, signing of a non-disclosure agreement followed by the distribution of the information memorandum and procedure letter.
As a next step, buyers will provide indicative offers (“Letter of Interest”) upon which qualified bidders for the next round are selected. This includes management presentations, site visits and due diligence in a (virtual) data room. It is common to add additional stages requesting confirmatory offers and a Letter of Intent (“LOI”) before a full due diligence and negotiations of the sale and purchase agreement (“SPA”) are started. This structured process with multiple bidders (which are systematically reduced in clearly defined steps) maximizes value for the seller and ensures a clean and timely closing of the transaction. It is important to maintain competition among potential buyers as long as possible in order to keep the negotiation power on the seller’s side and to have a sufficient number of alternatives until the transaction is signed and closed.
The sale of the own company is a unique process for most entrepreneurs and shareholders of medium-sized businesses. CAPEO Corporate Finance has leading experience from over 130 M&A transactions across a broad range of industries. We support our clients in all phases of the M&A process with excellence in preparation and execution of a transaction.
- Analysis, evaluation, business plan
- Preparation of information memorandum, management presentation and due diligence
- Research, identification and confidential contacting of potential buyers
- Establishment of competition among buyers
- Letter of Interest
- Management presentation
- Due Diligence
- Letter of Intent
- Contract negotiations
Quick and confidential process
- Intensive preparation of the company for the sales process
- Excellent process management with quick and efficient execution
- Confidentiality, discretion
Maximization of purchase price, terms of contract
- Development of consistent investment story and financial (business) plan
- Identification of all relevant potential buyers and confidential approach
- Controlled competition among buyers during entire process through parallel negotiations with multiple bidders
Competent entrepreneurial partners
- Experience factor: Commitment of partners (boutique style) who are experienced in complex transaction structures
- Close coordination with client
- Entrepreneurial partner of the client minimizing time requirement and distraction of the client and his management
Industry knowledge and international network
- Broad industry knowledge and track record
- International network with leading M&A boutiques in Americas and Asia
- Global identification of potential buyers
- Broad experience in cross-border transactions