Despite an estimated 25,000 business transfers in Germany each year, there are hardly any standardized processes or established methods for bringing business sellers and buyers together as quickly as possible. Searching for and finding a suitable candidate for business succession often turns into a real marathon, during which some participants run out of steam. It’s not uncommon for potential buyers to fail to identify an offer that’s right for them. Sellers, on the other hand, often struggle to set a market-competitive price for their business and thus to even attract the attention of interested parties.
Hans-Peter Gemar, Managing Director of concess GmbH, understands the challenges that arise during a business sale and highlights key points that business sellers should keep in mind:
1. Prepare methodically and mentally for the handover: Every seller of a company should have a written basic plan that defines targets, timelines, and price guidelines. This prevents the business succession process from dragging on unnecessarily.
2. Have the basic plan and targets professionally reviewed: An auditor, tax advisor, or M&A consultant should review the project for tax, legal, and business management aspects. This allows weaknesses to be identified early on.
3. Assess marketability: The advisor should verify whether the terms of the sale offer, as a complete package, are in line with market conditions. After all, the company is a commodity that is to be sold.
4. Conduct an analytical business valuation: Based on a written analysis of the net asset value and income value, the issue of pricing can be approached realistically. This prevents gut decisions, in which the price set by the seller is often significantly too high.
5. Invest in informative sales advertisements and sales brochures: The company’s data should be prepared to attract well-qualified buyers, and the target audience relevant to the sale should be clearly defined. This is the only way to reach potential buyers.
6. Establish confidentiality agreements with potential buyers: A written agreement ensures that the sale plans are not prematurely disclosed to employees, customers, and suppliers, which could be detrimental to the business.
As the business marketplace with the widest reach, DUB.de can help you sell your company.
