HOW TO MAXIMIZE YOUR EXIT STRATEGY FOR SUCCESSFUL AND PROFITABLE COMPANY SALE?
The sale of a company ranks as one of the most important decisions made in the lives of Shareholders and CEO’s. When existing business owners decide to invite a new investor, either a strategic partner either a financial investor, or to sell the entire company, the sales process should ensure the capital appreciation for existing owners.
If you want to sell your business for maximum profit, you need to start planning your exit strategy. For this purpose, MPC Consulting carries out all substantive and legal actions regarding the implementation of the sales process as defined below.
A DESCRIPTION OF EACH ACTIVITY IN THE PROCESS IS AS FOLLOWS
1. Once the object of the sale or the investment opportunity is clearly defined, the strategy of the sales process is created:
- The target company’s liabilities (capital and financial liabilities / debts to be offered) are precisely defined;
- The company’s strategic plan is drawn up as a commitment to future partners;
- The consultant, together with the client (vendor), determines the most appropriate sales strategy. A valuation of an enterprise is prepared for determining the price or equity ratios.
2. A valuation of an enterprise is prepared for determining the price or equity ratios.
3. A teaser, information memorandum and other economic and legal documentation for the due diligence data room are prepared.
4. A set of potential investors and assessment of interest is made (identification of potential investors):
- The consultant, together with the management of the company or/and the owners, identifies potentially suitable investors,
- The consultant sends an invitation and a teaser to enter the process, and explores the interest of potential investors.
5. Investors expressing interest sign a non-disclosure agreement (NDA) and take over economic and legal documentation.
6. The consultant shall invite potentially interested parties to submit non-binding offers, which are the basis for carrying out due diligence.
7. The company’s due diligence is conducted.
8. The consultant obtains binding offers for the client and conducts negotiations together with the client in respect of the financial and other conditions of sale.
9. The consultant prepares the final acts (legal and financial) for the conclusion of the contract and the execution of the sales transaction commence.