FAQ - frequently asked questions and answers

a) Preparation "in the broader sense" Preparation "in the broader sense" is highly individual and can vary greatly depending on the situation! Does the company need to be restructured for a handover? Does a successor (from the family or the workforce) need to be appropriately prepared and gradually introduced into the company? Do accounting issues (pension provisions are a classic example) need to be addressed in advance? Etc., etc. The specific requirements of preparation in the broader sense can only be clarified in a discussion! b) Preparation "in the narrower sense" Gathering the relevant information (as the seller of a company, you are subject to certain statutory disclosure obligations). Possibly creating a contingency plan (this is part of the standard procedure for proper succession consulting). Creating a short profile ("teaser") for anonymous market contact, and possibly also creating a company profile (info memo). This also includes a well-founded company valuation according to established procedures. Development of the succession plan according to the seller's individual ideas. I can prepare all of the above documents myself. Sometimes I bring in partners for special issues, for example if special systems are to be sold or real estate will play a significant role or if extensive pension obligations have to be settled before a sale. c) Initial market approach, anonymously via an M&A advisor - I would be happy to help you here. I have a network of potential buyers from various industries and fellow advisors and am regularly active in the various relevant databases and networks. d) In-depth discussions with specific interested parties that arise from the initial market approach. I accompany the discussions and together we examine the chances of success and discuss who you should ideally speak to and how with regard to a conclusion. e) Processing of the company sale and handover.

It's best to distinguish between the following situations: a) Pure company sale / pure M&A process. Is it simply a pure company sale? Is the company well positioned? Is the company a typical market participant in a common, standard industry? There are no pension obligations to be settled, and is the balance sheet simply structured without any special features? Is the company structured in such a way that the role of the selling entrepreneur (usually the managing director) can be filled by a new, external third party (the acquirer) within a reasonable period of time? Are the company's processes clearly regulated and of only "normal" complexity? Is the sale planned (or very likely) to a competitor, another entrepreneur, or perhaps even to a group of companies experienced in acquiring investments? In this case, you can expect a timeframe of 3 to 12 months. If one or more things need to be settled in advance, it can sometimes take up to 24 months; it is often expedient to "use" the following balance sheet date. b) "True" Business Succession Do you want to hand over your business due to age to your son/daughter, another member of the extended family, or to a young, developing employee? I have had entrepreneurs who prepared for the business handover in a structured manner and with step-by-step support seven years before the planned handover; on average, this takes about five years. Ultimately, this also involves, among other things, preparing the intended successor, providing appropriate training if necessary, possibly restructuring the company, and gradually introducing them to responsibility and leadership roles. At the same time, companies with a longer history often have legacy issues and special balance sheets that require regulation that must be resolved before a business handover. Often, it is also the entrepreneur's goal to optimally position their company for the future before selling it. This has a positive impact on the achievable purchase price and – this is important to many entrepreneurs – also secures jobs within the company. So, approximately 5 years is a relatively comfortable period for succession planning under the above-mentioned conditions; it can be shorter, and some entrepreneurs even plan for more time. c) Special situations - For a sale during an acute crisis of the company: usually approximately 1 to 6 months. - The entrepreneur wants to strategically realign the company before the sale and thus make the company saleable in the first place: approximately 3 to 5 years (you should include a few balance sheet dates). - Death of the entrepreneur: install interim management at short notice, then, depending on the family situation, from 2 months to 1 year. One basic rule is essential in the seller's interest: If you CAN take your time, you will achieve a better purchase price! If you HAVE TO sell within a limited period of time, the achievable purchase price will be lower. You see, the time required... it depends... Let's discuss in person how this can be presented sensibly for you!

Here I would like to refer to my blog article on this topic: https://www.christoph-seite.de/unterlagen-unternehmensverkauf

In the initial phase, the seller of a company is required to gather the necessary documents; the time required for this varies greatly. Your individually sensible succession plan would have to be determined; this takes place in a personal meeting. When preparing the documents required for the sale, several coordination processes are necessary, and you would have to be available for queries and ultimately approve the documents. During the anonymous research phase via a consultant, your time commitment depends on how much freedom you want to give a consultant. You will of course be required to engage in sales discussions with specific prospective buyers. The amount of time you have to invest here is certainly considerable. But here, too, there are significant individual differences. If you are already making considerable progress with a prospective buyer in the early stages, you could concentrate on them. The more competition you can maintain between the prospective buyers in the discussions, the better the purchase price will generally be.