If a business owner plans to sell and there is no one in the family to take over, there are a number of matters to consider. What is the value of the business? How much will it cost to sell the business? Who might be a potential buyer? Is the business ready for a sale, and how should the transaction be managed?
The challenges of a sales process are easily underestimated. Businesses are not all the same and it requires experience, insight and knowledge to manage the sales process successfully. In BDO Corporate Finance, we offer advice throughout the process, from the time the sales process is started, throughout the negotiations, and right up until the business is sold. We have huge experience within all phases of a sale, and the owner can therefore focus on running the business while we work to sell it.
We also specialise in succession planning for businesses and you can read more about this below.
The best price and the best terms
To us, the primary task is to sell the business at the highest price and on the best possible terms. We can benefit from our wide network, where we can explore many different opportunities to sell the business. As regards SMEs, BDO is the leading M&A player in Denmark. We are in daily contact with a wide range of stakeholders in the form of businesses, lawyers, bankers, and investors. So it is possible to search, fully confidential, for potential buyers when a business is to be sold.
If there are several potential buyers, all showing an interest, the business may be sold under auction-like conditions, resulting in a significantly better price.
As a business owner, it is advantageous to enter into a proactive sales process, instead of passively waiting for a potential sale. A proactive approach benefits the selling price.
The business is analysed and the price is set
When we assess the value of the business, we take many specific factors into account. Businesses are different and our insight and experience enable a thorough analysis. We include earnings and equity in the overall evaluation and dig deep to understand the business’ commercial basis.
Competitors, industry conditions, customers and suppliers are included in our analysis, and we review products and services, and the skills of employees and management. A buyer of a business sees risks that the owner of the business may not see. We are able to see both sides, and we find a realistic price. Combined with a financial analysis of the income statement and balance sheet, we arrive at the overall picture and set a price.
Detailed sales material
We use our professional network to look for a buyer. We prepare detailed and highly professional sales material to present the business in the most possible manner. If there are any negative aspects, we provide the right explanations. We look for the buyers who will be able to make the best use of the business, because we know that where the synergies are greatest, the value of the business for sale will also be highest.
Our Corporate Finance department has extensive experience in advising on successful succession planning. We know that careful planning, good organisation and a smooth implementation will ensure that the business maintains its value and can continue to grow and develop.
More than 100,000 Danish businesses are facing a generational change within the next ten years. The current owners are stepping back or retiring, and one or more of the family members want to take over the business.
When a generational change is to be implemented
The generational change can be a complicated process with difficult decisions to be taken. It is not only assets that change hands. There are relationships with a loyal workforce, the public, partners and suppliers to be considered.
A sound generational change
We have for many years been engaged in changes between generations in practice, and we are always ready to advise and guide through all stages of the process. We know there are many factors to be considered, and we have considerable knowledge of buying and selling businesses, and of the pricing hereof.
The four steps of a generational change:
deliberations preceding the generational change
preparing for the change
implementing the change
the time after the change.