The process of selling your business
Steps in selling a company
The process of selling a business roughly consists of 7 steps. The final objective is to sell your business for the best price. This objective is achieved by proper execution of the following stages;
Engagement letter and process planning
The process of selling a business starts here. Firstly we equip ourselves with your company's vision and philosophy. We will try to understand your company to the last detail which will help us in selecting the most suitable buyers. Once we have taken the time to discuss your plans, we will present you a detailed proposal and sign the engagement letter.
The executive summary and deal book
We will start preparing an anonymous 'executive summary' which gives the prospective buyer an anonymous view of your company. At the same time we will prepare a detailed company profile ('deal book') including all relevant details regarding your company. In the first instance, interested companies will receive the executive summary. If further interest is made known, the prospective buyer company will receive the detailed 'deal book' after signing a Non-disclosure Agreement.
Finding suitable buyers to sell your company
In this step we continue analyzing which companies in the marketplace are most suitable for acquiring your company. We use our European-wide subscribed databases, our network and other available resources. We grade acquirers based upon the value added for your company.
After your approval of the longlist of targets we will contact them. We mainly sell them the advantages of your organization and picture very clearly what they can achieve by acquiring your company. During the talks and meetings we will thoroughly test the interest and financial capabilities of the companies we talk to. The result will be a shortlist of targets whom we will invite to visit your company.
The valuation and negotiation process
In the M&A process we will value your company on the basis of various methods. At the same time we will learn about other items (e.g people retention) that are important to you. During our talks we aim to understand in detail what the valuation methods of your prospective acquirers are and what absolute value they add to your company. For more information about business valuations
The Letter of Intent (LOI) or Term Sheet
Once we have found the most suitable company to buy your business we start preparing a term sheet or LOI. The process of selling a business is almost coming to an end.
Due diligence
The due diligence is done by the acquiring company or by external accountants/due diligence experts working on behalf of the acquirer. We can assist in the due diligence to ensure all required documents (the due diligence checklist) are prepared on time, so the process can run smoothly. Due diligence is executed on financial, legal and other business areas. For more information about due dilligence
The contract
In the final phase the contract will be drawn up by an external legal party. Normally, it is the responsibility of the acquiring company to do this. Corporate Finance in Europe can manage this process from the seller's side if desired. We work closely together with the seller's legal counsel to ensure the contract is appropriate for the sellers.
European M&A process
We provide our services in all European countries. On account of our peoples native skills the following countries have our special attention: the Netherlands, Belgium, Germany, France, United Kingdom, Spain, Portugal, Italy, Austria, Switzerland. Corporate Finance in Europe (CFIE) is highly qualified to help out on M&A advice, consultancy, valuation, taxes and legal matters. See more details on our m&a advisors
Contact us for a free of charge brainstorm and feedback on your plans and allow us to give you more information about the process of selling a company.
