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Sale of a business in the commodities sector

The commodities sector forms the foundation of numerous key industries and is continuing to gain strategic importance as a result of global transformation. intelligentis capitalises on these market dynamics and supports entrepreneurs in successfully selling or strategically repositioning their commodities businesses, drawing on in-depth market understanding, clear structure and the utmost discretion.

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Your expert in the commodities sector

Rainer Witt · Managing Director of intelligentis

Rainer Witt is a managing partner at intelligentis and a proven expert in business sales within capital- and resource-intensive sectors such as the commodities industry. He has been advising on transactions across commodities-related value chains for many years and understands the specific demands of volatile markets.

His in-depth understanding of market cycles, commodity pricing dynamics and regulatory frameworks, combined with a national and international network of strategic buyers and investors, forms the basis for successful transactions. Entrepreneurs benefit from clear process management, a high degree of discretion and personalised support throughout all phases of the sale.

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  • Market situation
  • Services
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Current market conditions and specific features of the commodities sector

The raw materials sector is at the heart of global economic and geopolitical developments. Critical raw materials such as lithium, copper, nickel and rare earths are indispensable for future-oriented sectors such as electric mobility, the energy transition, digitalisation and high-tech manufacturing. Limited resources, rising demand and volatile prices characterise the market environment. At the same time, stricter environmental regulations, sustainability requirements and high investment costs are leading to structural changes along the entire value chain – from exploration and extraction to processing and recycling.

Against this backdrop, consolidation is continuing to increase. Strategic and financial investors are focusing on companies with secure access to raw materials, efficient organisation or innovative extraction and recycling technologies. This creates attractive sale and investment opportunities for well-positioned medium-sized companies.

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Services relating to the sale of commodities companies

The sale or acquisition of companies in the commodities sector requires market knowledge, strategic thinking and a structured approach. intelligentis provides personalised and discreet support throughout this process, from analysing the business model to targeting suitable buyers.

The focus is on access to raw materials, regulatory approvals, sustainability aspects, profitability and the company’s position within the value chain. Sales documentation is professionally prepared and presented in a way that is clear and easy to understand for strategic buyers and investors.

Remuneration is entirely performance-based and is consistently linked to the successful completion of the transaction.

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Successful company sales in the commodities sector

intelligentis regularly advises on company sales and investment transactions in commodity-related and industry-driven markets. In doing so, it brings business acumen, experience and a deep understanding of global commodity markets to every engagement.

Experience shows that companies with secure access to raw materials, sustainable extraction strategies and innovative recycling solutions are particularly attractive to strategic buyers. In addition, intelligentis produces its own publications, which analyse current trends and developments and provide a deeper understanding of the sector.

The combination of practical transaction experience, sector expertise and personalised support provides entrepreneurs with a robust basis for decision-making in a volatile market environment.

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Commodities Industry Newsletter, September 2023

intelligentis regularly analyses key developments in the commodities sector through its own industry-specific publications, providing context for market trends, regulatory changes and transaction activity.

The ‘Commodities’ sector newsletter for September 2023 examines developments relating to sand and gravel quarries, sustainability and consolidation amongst small and medium-sized enterprises.

The newsletter is available here: Commodities Industry Newsletter September 2023.

industry newsletter – commodities

Frequently asked questions about selling a business in the commodities sector

Entrepreneurs in the commodities sector face specific challenges when selling their businesses, as price volatility, regulatory issues and long-term demand forecasts play a key role in strategic decision-making, particularly in this sector.

During a confidential consultation, we address these issues on a case-by-case basis and outline realistic courses of action. Below you will find answers to frequently asked questions drawn from real-world experience.

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What does the preparation for the sale of my commodities company involve?

Preparations for a sale include an analysis of the raw materials portfolio, permits, cost structure and key financial indicators. In the raw materials sector, sustainability, environmental regulations and long-term mining prospects are particularly relevant to valuation.

Thorough preparation by intelligentis creates transparency, reduces risks and lays the foundation for a robust valuation.

How does the sales process work in the commodities sector?

The sales process is conducted in a structured and discreet manner so as not to disrupt ongoing production, processing or supply processes. intelligentis centrally coordinates the approach to potential buyers, due diligence and negotiations.

Particular attention is paid to licensing status, regulatory certainty and the stability of supply chains.

What happens after I sell my commodities company?

Following successful completion, intelligentis supports the handover phase and structures the transition, for example by defining transitional roles or providing support for a limited period.

In the commodities sector in particular, the transfer of knowledge regarding permits, production processes and site-specific characteristics is crucial.

When is a good time to sell a compressed air company?

The right time depends on your personal objectives, market cycles and trends in the relevant commodity prices.

intelligentis helps you to strategically select the most productive time and to take price and demand fluctuations into account in a targeted manner.

How is the enterprise value of a commodities company calculated?

The valuation is based on raw material reserves, production costs, market prices and the regulatory framework. Sustainability requirements and operational efficiency are also taken into account.

From this, intelligentis derives a market-based valuation that is aligned with current buyer expectations and sector-specific characteristics.

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Let's Discuss Your Plans:

You are considering a business transition, acquisition, or sale. In a confidential conversation, we review your situation, discuss the available options, and help you determine a well-founded path forward.

Schedule a personal consultation with our advisors.

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