M&A consulting for the realisation of a company succession

Our services in the field of management consultancy

We support entrepreneurs in the sale of their company. We have the necessary knowledge of methods and processes to successfully implement transactions.

M&A consulting as well as company valuation and planning form the core of our consulting activities for company sales. Objectives and scale are derived from the respective project and are discussed in advance. Close co-operation with our clients is a key success factor. Nobody knows the company, its markets and the current challenges better than the entrepreneur, who has been active in the industry for many decades and has built up their company over the years.

M&A consulting

Once the decision has been made to organise a succession through a sale to a third party, a structured sales process is the best way to successfully conclude a transaction.

With the help of a confidential and targeted approach to prospective buyers identified in advance, we create a controlled competitive situation. After signing a confidentiality agreement, the prospective buyers receive an information memorandum summarising the company, its products and its environment. It contains all information on the financial situation in recent years, supplemented by a sales plan (income statement, balance sheet, cash flow statement).

In the current transaction, all interested parties receive the same information as the basis for their non-binding offer. The seller can assess the purchase price achievable on the market by receiving the non-binding offers at the same time. As consultants, we take over the structuring of such an approach and thus increase the chances of success.

Prospective buyers with attractive offers are given the opportunity to hold personal discussions with the seller and carry out due diligence. If the offer is confirmed after the due diligence and a “commercial agreement” is reached, this must be converted into a purchase agreement.

Business valuation and planning

A satisfactory answer to the question “What purchase price can I expect?” is a prerequisite for a successful transaction. An expected purchase price can be estimated using various methods.

Multiples are a proven method for estimating a possible purchase price for sales. The starting point is an earnings figure (operating result or EBIT/EBITDA), which is multiplied by a multiple. The earnings figure is usually analysed over several years and adjusted for so-called “non-essential” or “extraordinary” sales and expenses in order to obtain a more meaningful earnings figure.

More detailed valuations are forward-looking and require both corporate planning to determine cash flows and the calculation of risk-adjusted interest rates. The current value of future liquidity surpluses can be determined in this way.

To prepare purchase price estimates, we use valuation tools and access databases that are also used for valuation reports. You can use the following tool to carry out an initial non-binding valuation of your company yourself: