In our opinion, no intermediary can give such a guarantee. The insurance that we give to our clients is that we do not accept a case without being convinced that the transaction is possible at the desired price. The key to this approach relies on a range of prices based on an evaluation carried out during the preparatory stage. This strategy usually ends with a transaction at the price aimed for, maybe even more.
This approach allows the client to avoid disillusions, which are certain to occur when they give the case to an intermediary who hold out a completely unrealistic sale price to them. This also wastes time and the company can be damaged. These professionals (??) base their strategy on the law of averages. The more cases they are in charge of, the bigger their chances of finishing a transaction, which leads to a very poor success rate.
Our strategy is completely the opposite from that of these operators. We aim for a 100% success rate. We therefore only accept projects that we consider achievable. Thus, we do not make false promises, there are no illusions. The only promise that we make is to devote everything necessary to your case in a way which enables us to claim that no other company could obtain a better result.
This question often comes up. For us, it is the equivalent of asking a doctor “have you ever treated an engineer?” It is certain that experience in a the sector can help at the beginning, however every business is unique and every industry evolves. Past research must be refreshed and brought up to date just like with medical testing. What’s more important is to prescribe the right tests and to know how to analyse them.
It is therefore more important for our clients to be assured that we know our job perfectly rather than theirs. In addition, we always make sure that we understand the stakes and the tendancies of the sector, the company’s environment and the management’s objectives. In our eyes, this is achieved through offering custom built services.
For an entrepreneur, their business represents important personal assets as it has often taken a lifetime of hard work. For a senior executive, the sale of a subsidiary company or a branch represents an enormous challenge which can have a major effect on the parent company’s balance sheets. In both cases, we cannot go back once the transaction is complete. It is important not to get it wrong. ACTORIA brings you the expertise which you will need at each stage of the Merger or sale process.
The intermediary is often called upon to play certain specific roles. One of the most important roles is to maintain the buyers’ interest at a high level and to help with their process so that they make an attractive offer. The seller cannot easily adopt this attitude without giving the impression that they are in a weak position compared to the buyer.
The intermediary acts like a plug between the seller and the buyer, preventing any conflict which could result from raised emotions and also ensures that communication channels between the parties remain open. However, beyond technical considerations, the intermediary allows the management team to be free from time and energy demands, which the Merger or the sale of the company requires and therefore enable them to devote all of their efforts to the success of the business. The health of the company is not therefore at risk from being affected during this period, the contrary often produces a disastrous effect on the interest of potential candidates.
The best way is to identify a strategic buyer; a buyer who will buy your company to complement their existing businesses and create synergy. This type of buyer will generally pay more for your business than any other type of buyer.
But whether you have a strategic buyer or not, it is necessary to interest enough buyers, in a manner that will create competition between offers. This is a method that Actoria is currently using for the execution of mandates. We establish a list of potential buyers from our own data bases and specialised directories. We can also use our international network.
The final element in our strategy is strategic negotiation with potential buyers. The intermediary’s contribution can be decisive at this level. It is much more than just getting the best price for the company. An experienced intermediary will use creativity and imagination in order to attempt to satisfyof course, the client’s aspirations but also those of the buyer, knowing from the start that it is only when the two parties are satisfied, that a transaction can be made.
We believe that our intervention must be carried out as if it were a partnership.
You must participate in the process in the following manner:
– By trying to portray the company in the best light (make sure the company is in order, widening the range of products, adapting to geographical influences, widening the clientele, relocation, changing auditors…)
– By maintaining an active role during the process (presence in directors clubs/ in conferences by giving speeches, in the press, by gaining a good price…)
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