Remember to always ask yourself if your company’s ability to create value is being fully exploited.
Buying all or part of the shares of another organization is an excellent business opportunity as long as the right value is paid for it. Even if the acquired company is the right one, making a mistake in the amount to be paid could negatively impact the return on investment. This emphasizes the importance of performing an effective valuation process and a smart negotiation strategy.
If you already are a shareholder of an organization, you may have the opportunity to strategically enhance your business value by acquiring totally or partially the shares of another company that could be a competitor, a supplier of raw materials or a participant in the chain of production of the currently owned organization.
The interest to acquire a certain organization could be reciprocally, hence giving room to start a merging procedure. However, in this case the valuation becomes an important element to establish the shares’ percentage of the prevailing company, as this is determined by the valuating the shares of the merging companies individually.
Preparing a company to be sold should be seen as an ordinary process, never intending to hide the elements that devalue it, but rather taking the necessary corrective actions to prevent the same elements to negatively impact the valuation process.
We must also take into account …
The due diligence process (study carried out to examine in detail the different areas of the company) to ensure:
1. the veracity of the information provided by the counterpart,
2. the risks that must be mitigated are identified,
3. the contingency measures that must be considered are established, and;
4. perform a systematic analysis that determines whether or not these risks should be accepted, under what circumstances and how they impact on the price of the negotiation.
If you are considering buying or selling your company, or a part of it, let’s work together to define the right value and design and execute the best strategy that guarantees a successful closure.
Handling sensitive information with other parties must satisfy the standards established by our firm. This includes not revealing sensitive information about your company while enabling the growth of the interest of the potential buyer with the appropriate information. Our firm evaluates and classifies information according to the level of sensitivity. The information is always provided gradually to the prominent buyer’s depending on the different stages of the negotiation and as the buyer’s materializes its commitments.
If you want to consider selling your company or a portion of it, let’s work together to define the right value and perform a strategic search that leads to the right buyer.