Eight steps to buying a business
Do you want to buy a company? Then it is important to prepare well. In eight steps you can see what is involved in the purchase of a company: from the search and selection to the valuation, negotiations and finalization of the purchase:
- Drawing up a clear search profile and shortlist: A successful business takeover starts with good preparation. Which companies do you find interesting and what are your (strategic) intentions. In this way we arrive at a clear search profile. We draw up a list of suitable companies and select the candidates that offer the most opportunities, the so-called shortlist.
- Approaching sellers: Based on the profile, we will approach the companies on the short list with the question whether they are interested. Interesting companies are presented to you via our extensive network and – after your approval – approached anonymously. In a buy pitch, we show the seller why you want to buy this company, what your ambitions are and why you are the right party to ensure the future of the company.
- Valuation and bidding: Sellers want a decision on the value and price as quickly as possible. We give the seller an indication of the valuation based on figures we receive from the company. Based on a number of conversations and on the basis of the first reactions to our non-binding offer, you make a choice and introductory meeting is arranged. If both parties feel good about this, the negotiation phase starts.
- Negotiations: It's all about a good negotiation strategy. In consultation with you, we determine the objectives and possible alternatives. Based on the valuation, we determine the maximum and substantiated acquisition price. In the process that follows, we will of course do everything we can to achieve maximum benefit for you. Once we have reached an outline agreement with the seller, we record the agreements in a letter of intent (LOI). The letter of intent includes the offer, the conditions, but also matters such as confidentiality, exclusivity, reservations and a dispute settlement.
- Due Diligence: The buyer has the right to investigate whether the information you have received from the seller is correct. This is done through an audit of financial, fiscal, legal, commercial and general aspects. Do new negotiating points emerge from this? Then we will discuss this.
- Acquisition financing: You can count on our support when arranging the acquisition financing. If you need external financing for your company takeover, we usually look for a combination of a bank loan, an informal investor / investment platforms and a vendor loan. In the latter case, part of the sales price is converted into a loan.
- Completion of purchase (closing): As soon as the financing has been completed and there is an agreement about the sale price, you sign the purchase agreement at the notary. This contract includes the agreements from the LOI. After signing the purchase agreement, paying the purchase price and signing the notarial deed, the purchase is completed.
- Integration: After the acquisition, the integration begins. Getting to know the company, gradually changing the culture, motivating employees, building trust in relationships. The employees of the acquired company want to know who you are, what your plans are and what will change for them. Organizationally, commercially, technically, financially and strategically, the companies must be integrated into an organization. Putting the plans devised in advance into practice step by step, that is your challenge. Is it possible to realize the forecasts? Do you need advice? Then you can count on us with a thorough integration plan.
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