The purchase or sale of a company is a demanding process. Both purchasers and sellers want to be sure that they are making the right decision and have all the important information for the transaction. In addition, both sides want to achieve a fair price and avoid unexpected surprises. To ensure this, a tried and tested procedure for corporate transactions has been developed. The basic prerequisite for success is to approach the transaction in good time, plan it professionally and carry it out competently. If one party is under pressure, it is difficult to achieve a satisfactory result. The emotional side of a corporate succession should also not be underestimated. Especially in the SME sector, owners have a strong bond with 'their' company and the workforce.

Sale Procedure

Phase 1: At the beginning

The thorough preparation of the sale is extremely important. Facts and figures about the company must be meticulously prepared. The strengths and potential of the company must be shown.

Phase 2: Company valuation / business plan

In this phase the value is determined and fixed by the company. There are various proven valuation methods for this purpose, such as DCF (discounted cash flow). A business plan is drawn up. As soon as the company value is determined, the teaser is created. The teaser contains the most important information about the company that can be presented to potential buyers.

Phase 3: Presentation about the company

The professional design of the presentation about the company is of utmost importance. This contributes decisively to arousing the interest of buyers. Today, a presentation is produced in printed form (print) but also in digital form (online).

Phase 4: Buyer search

Define strategy whether to search for buyers publicly or discreetly. In the discreet search, potential buyers are sought and direct contact is established. With this procedure one is restricted, but not in public. Announcing the intention to sell to the general public can find a larger number of potential buyers. However, this method may cause uncertainty among staff and customers. The aim is to find several potential buyers. The platform of Immobilien Sarbach Real Estate & Consulting can be used for both the discrete and the public search.

Phase 5: Buyer selection

Dubious interested parties are excluded. Serious candidates will be contacted in the next phase.

Phase 6: Making contact

First contacts are made with prospective buyers and exploratory talks are held. The solvency / liquidity of the interested parties is checked. A LOI (Letter of Intent) is signed with remaining potential buyers. An indicative sales price is determined in the LOI. 

Phase 7: Sale

The DD (Due Dilligence) examination is carried out with the prospective buyers. On behalf of the prospective buyer the company is meticulously examined. This may take a certain amount of time, but it serves the security of the buyer, so that he can gain a deep insight into the company and submit a serious bid. Contract negotiations are conducted on the basis of the binding offers, this should be done simultaneously with at least 2 to 3 prospective buyers. The selling price must be in line with the market and correspond to the economic value. There is no room for emotional decisions and ties to the company on the part of the seller; these can stand in the way of a successful sale. This is where Sarbach Consulting can be a valuable partner.

The conditions of the sales contract and the sales price are worked out and checked. Intensive contract negotiations take place to determine the selection of the final buyer. Here too, it is extremely important to have reliable partners at your side or to entrust this task to an experienced team such as the experts from Sarbach Consulting. Once the purchase contract has been signed, it is binding.

Phase 8: Execution

The closing closes the sale. The purchase price is paid and the company is handed over to the buyer. It is important in this phase that the communication strategy that has been defined is adhered to. Employees, customers, suppliers and the public are informed.

Purchase Procedure

Phase 1: At the beginning

Thorough preparation for a purchase is extremely important. Which goals you are pursuing with a purchase are meticulously worked out and determined. These facts accompany the entire process until the deal is closed. The specific goals must never be lost sight of.

A communication concept is worked out and the post-merger integration (PMI) into existing companies is determined. How are employees, partners, customers and suppliers informed about the purchase after the closing.

Phase 2: Market analysis

Which companies are for sale and meet our requirements? Are these companies publicly offered for sale or must be inquired whether a sale is being considered. A strategy of first contact is determined. Should this important task be assigned to an experienced team of experts, such as Immobilien Sarbach Real Estate & Consulting.

Phase 3: Making contact

Companies are actively contacted depending on the strategy defined. 

Phase 4: Selection of companies

Exploratory talks are taking place. Do these companies actually meet the defined objectives. A list of interesting companies is determined. Exploratory talks take place in which a possible willingness to buy is signalled.

Phase 5: Letter of intent

An indicative purchase price is required from a selection of interesting and interested companies. A rough business plan is determined and it is examined whether the purchase price is realistic. A Letter of Intent (LOI) is signed with companies that are eligible.

Phase 6: Due Diligence examination

In the DD (Due Dilligence) audit, the companies are meticulously examined. This can take a certain amount of time, but serves as security of the purchase. It involves an in-depth analysis of the company, its profitability and the quality of its employees. In addition to the business management aspects, legal and tax aspects are also examined. The aim of due diligence is to obtain as much information as possible about the opportunities and risks. This facilitates the purchase decision, the pricing and the drafting of contracts and helps to verify the appropriateness of the proposed price. Sarbach Consulting's experienced team of experts and large network in the fields of tax, law, IT and business administration can provide valuable assistance in this respect.

Due diligence is particularly recommended in the case of a takeover outside the family. The external successor should not rely exclusively on the company profile developed by the owner. An own assessment of the company's position in the market, its market share, the competitive situation and all relevant legal and tax aspects is important.

The results of the due diligence form the basis for the preparation of the business plan. This plan provides clarity about the highest possible purchase price. 

Phase 7: Contract negotiations 

Contract negotiations with at least 2 to 3 candidates follow simultaneously. The conditions of the purchase contract are negotiated. Protection must be agreed for all risks identified in the due diligence and compliance with the objectives defined at the beginning of the acquisition must be checked again.

Finally, the decision for a company is made through intensive contract negotiations. Here too, it is extremely important to have reliable partners at your side or to entrust this task to an experienced team such as the experts from Sarbach Consulting. Once the purchase contract has been signed, it is also binding. 

Phase 8: Execution

With the signature of the purchase contract and the payment of the purchase price the ownership of the company is transferred. The own communication concept worked out at the beginning is also implemented in consideration of the communication concept of the seller.