Frequently asked questions during the corporate divestiture
How long does it take to divest of a company?
A corporate divestiture can proceed very quickly. In general, however, a corporate divestiture requires a lead time of 3-6 months, in some cases even longer.
How is the corporate divestiture prepared?
Our goal is to achieve the highest price for the divestiture of your company. This is why we prepare you as thoroughly as possible for the sale, and activate all sales promotion measures. In other words, we pull out all the stops for the best possible sales presentation.
How does data exchange in the sales process work?
Depending on your requirement, we can provide you with a data room which you can use to upload all sales-relevant documents. This data room is highly secure, located in a certified data center and available exclusively to you. Individual sales-related data can quickly be shared with prospective buyers, and reference documents for notary appointments can be created automatically, among other things. This saves you valuable time that you can invest in your daily tasks or in negotiations.
Why are there vendor warranties?
When it comes to certain important characteristics of state, buyes demand so-called vendor warranties (such as the exclusion of implied warranties or extensive warranties by the seller with respect to certain characteristics of the sold company). A sale of the company can be made satisfactory despite all warranty issues of the buyer for all sides. intelligentis gladly advises you on this.
What are Dealkillers?
Every sales process is full of dangers. The interests and objectives of buyer and seller are very different. Mutual trust is the top priority. Experience shows that there are so-called Dealkillers, which very often lead to the termination of negotiations (such as delays, greed or lack of transparency). For more information about this topic read our tips and tricks-section.
Tips and tricks for corporate transactions
Be sure before the start of the negotiations, which goal you want to achieve with a deal. Stay realistic. Too high expectations often stay in the way of successful transactions. Generally, abou half of all M&A-dels fail – so you should always plan to cancel.
Also try to follow a pre-determined schedule. The working time required to prepare a corporate transaction can easily be underestimated. Without structured planning, the completion of M&A projects can therefore be significantly delayed
A negotioation under pressure usually leads to worse results. Make sure that you only seek a transaction if the conditions are as favourable as possible for you. This point has several aspects. It is important, for example, that you could cancel a negotiation theoretically instead of being forced to make a deal by financial constraints. You should plan long-term when it comes to M&A transactions. Initiate the necessary steps for the project in good time. This also means that you can not persist on just one potential negotiation partner, but choose the best out of several options.
Don’t sell yourself short. Of course, you should be open and honest, but often by solving smaller issues more revenues than costs are created. Before a deal, therefore, analyze exactly where optimization potential exists. Put yourself in the position of your counterpart. From a sellers point of view, for example, one can emphasize potential synergy effects that could actually arise for a buyer. From a buyers point of view, the strategic perspective should be in focus. What goals do I want to reach with the purchase and what are they worth to me? Often, it is much less about the transaction itself, but more about expanding business.
In order to find a partner for an M&A deal, the most obvious option for an entrepreneur to sell his company is to turn to other entrepreneurs who are actively looking for a property to buy (and vice versa). In fact, such a view limits the relevant audience because often the best buyer/seller does not even know he is interested in the deal. This is especially true from the buyer’s point of view, because the most lucrative companies are usually not actively marketed. In the mid-sized sector, the market is very non-transparent and there is more emphasis on the right networks and relationships. At this point, agents or consultants can greatly contribute to a better matching.