Image: iStockphoto/katleho Seisa
The Background
J. Klausner Professional Multimedia GmbH is a value-added reseller (VAR) founded in 2005 and headquartered in Innsbruck, Austria. The company specializes in interactive Clevertouch displays and offers a wide range of complementary products and services for audiovisual solutions, including installation, training, and maintenance. J. Klausner has a dealer network covering Austria, Liechtenstein, and South Tyrol, and is the exclusive distribution partner for several of its products in these regions. The company serves customers in the corporate, educational, and public sectors.
Since the company’s former sales director and shareholder, Edwin Klausner, intended to retire at the end of 2022, the family began searching for a succession plan and an opportunity to sell their shares. Through the sale to heinekingmedia GmbH, a leading provider of innovative digital solutions for data-protection-compliant communication, interaction, and collaboration in the field of digital signage, all of these goals were achieved to everyone’s satisfaction; macx. GmbH from Munich served as the exclusive advisor throughout the entire sales process.
After the transaction was completed, Edwin Klausner and Alexander Härtel, managing directors and project managers at macx., shared their reflections.
Interview with Edwin Klausner
Mr. Klausner, what led to the decision to sell your company?
A major supplier approached me to ask whether there was a possibility of acquiring our company. Although the question came as a surprise, my daughter and I had already been looking into the possibilities of a sale shortly before that. Due to my upcoming retirement, I had already asked my daughter before this inquiry whether she would like to continue running the company. Her clear answer was that she did not want to take on sole responsibility as managing director of the company in the coming years.
How difficult was this step for you?
I was very relieved to hear my daughter’s clear stance, as it made it clear to me that I would be able to enjoy my retirement and wouldn’t have to constantly be thinking about my daughter’s company.
Why did you decide to use a professional M&A advisory firm for the process of selling the company?
After the previous sale negotiations with our supplier had failed, we realized that a local approach wasn’t the right way to go. We then researched the various options for selling a company online and came across several M&A agencies.
Why did you choose macx.? How satisfied were you with the support provided by the macx. team throughout the process?
The structured process outlined on the macx. website seemed to me to ensure a targeted and transparent execution of the sale. A subsequent video conference convinced us that we had found a professional partner in the macx. team.
What criteria were important to you when searching for a suitable buyer?
Of course, price was a key factor, since no further distributions could have been made from the thriving company after the sale. However, it was also important to have a strategy for the company’s continued success, ensuring the preservation of the location, jobs for employees, and a successful, long-term future.
What did you see as the biggest challenges in the transaction process?
The time constraint. The negotiations and, ultimately, the sale had to be completed before my upcoming and fixed retirement date. For personal reasons, the retirement date could not have been postponed.
Why did you decide to accept heinekingmedia’s offer?
heinekingmedia presented a good offer, but what really convinced us was the in-person meeting in Innsbruck—even though they hadn’t been our top choice up to that point. An important factor was the personal demeanor of our counterparts, but also the fact that heinekingmedia sees the future primarily in software solutions rather than in hardware sales. Their concepts for schul.cloud, tafel.cloud, and the provision of interactive learning materials precisely tailored to the curricula of the respective countries convinced us, as we, too, see a bright future in this area.
How satisfied are you personally with the sale process and the outcome?
Looking back, we are very satisfied with the professionally managed sales process and the result achieved. We have a very good working relationship with the management and employees of heinekingmedia. A successor and a sales representative, who will take over my sales role starting next year, are already active within the company. Our product range has already been expanded through heinekingmedia’s portfolio and presented to our key partners. Through them, comprehensive distribution across Austria, South Tyrol, and Liechtenstein is being implemented. The software solutions are scheduled to be launched in the near future. This strategy, combining software and hardware, will ensure the company’s long-term success.
Interview with Alexander Härtel
Mr. Härtel, what was the initial situation you encountered?
An Austrian family-owned business, jointly managed by a father and his daughter, was up for sale; the goal was to find the best possible solution for both the family and the company: The aim was to develop a sound succession plan for Edwin Klausner, who had helped shape the company over the past few years and was responsible for sales. At the same time, his daughter wanted the option to leave the company without having to close it down. So we had to find a suitable buyer who would pay the best possible price while also serving the interests of both family members.
To find such a buyer, we conducted an in-depth analysis of the market and the industry, identifying and approaching more than 200 potential buyers. After screening them through intensive discussions, a shortlist of serious prospective buyers remained. Ultimately, the decisive factor was, above all, the opportunity to meet the family and their legal counsel—a friend of the family—in person. We facilitated all negotiations with the preferred potential buyers.
What challenges did you face during the project, and how did you overcome them?
The first challenge we faced at the start of the project was that this was a relatively small company operating in a very niche market. This meant that finding a suitable buyer was a challenging task. It was once again confirmed to us that our success ultimately stemmed from a broad market approach, in which we also contacted competitors of the seller’s previous “key accounts.”
The second challenge was mediating between a professional and experienced buyer and the sellers, who, of course, were selling their company for the first and only time. It was very helpful that we had many discussions with the sellers, which allowed us to clearly manage expectations.
What went particularly well from your perspective?
First, the truly close and trusting collaboration with the sellers, the Klausner family. In terms of the process, we were able to achieve a very good valuation and improve upon it as the process progressed. This was mainly due to the bidding process, which allowed us to clearly incorporate and have evaluated the company’s future potential based on framework agreements that had already been concluded.
As is often the case with projects, the timeline was delayed slightly due to various issues and coordination efforts. What ultimately matters is that we received several very suitable offers, which were refined and subsequently served as a solid basis for the Klausner family’s decision. For us, this confirms that a broad bidding process and reaching out to more discerning potential buyers were exactly the right approach to finding the right solution—even for a small business—that serves the respective interests of Mr. and Mrs. Klausner.
What advice would you give to business owners who are thinking about succession planning?
The succession process should be carefully planned well in advance so that as many potential solutions as possible can be generated and discussed with trusted advisors. If no suitable internal successor is available, selling the business is often a good solution. For an initial assessment of the company’s value, we’d be happy to refer you to our free business valuation calculator at www.macx-transaction.com/unternehmenswertrechner.
