The type of potential buyer will determine the process of the sale.
It is evident that the sale process will be simplified if it is a family sale rather than a transfer to an international group.
Before preparing a presentation file, it is necessary to make a list of potential buyers:
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– A family member
In the case of a takeover by family members, you should examine how to hand over power, without damaging the interests of other heirs.
In this case, the demerger, the division of property and the family holding company are tools, which will enable you to resolve this problem.
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– Group of executives (LMBO: Leverage Management Buy Out)
– Group of executives with a financial investor
– Group of executives with an external manager (LMBI)
In this case, it is necessary to assure that the people interested are advised correctly, and if it is needed, help with the steps that they are involved with, with a progressive transfer, an earn out clause or even credit seller.
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– Competitors, clients, suppliers
– Industrial investors
– Financial investors (LBO: – Leverage buyout)
– Manager or a group of managers
If the potential buyer is a competitor, confidentiality of information given is crucial. In fact all competitors will be interested to receive precise information about the company being sold without a real acquisition plan.
However, the vendor must not neglect this type of potential buyer in so far as, those with a strategic interest to buy are competiors. They also have knowledge of the profession, which makes negotiation easier.
For the transmission of information, the data room principle will be used.
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In this case, the buyer is the market with all of its restraints.
It is only a possibility for large SMEs, who have had important progression and regular and recurrent positive results during the last five to seven years.