Selling a company is a strategic decision that requires a careful approach and meticulous planning. To this end, before starting the sale process, entrepreneurs must carry out a detailed valuation of the company in order to set a fair price and attract qualified buyers. This involves not only evaluating tangible assets such as equipment and property, but also considering intangible factors such as brand reputation and future growth potential.
It is usually recommended that this task be carried out by an external consultant specializing in valuation, above all to guarantee impartiality in the choice of comparable market indicators and thus give the future buyer more credibility in justifying the asking price.
In addition, it is essential to ensure that the company’s finances are in order before starting the sale process. This includes preparing up-to-date and accurate financial statements, identifying and resolving any outstanding liabilities and ensuring that all taxes are paid. A solid financial situation will increase the company’s attractiveness to buyers and facilitate the due diligence process.
It is very common for transactions to buy companies that are not organized financially or accounting-wise not to go ahead when there is a big difference in maturity and financial organization between the target company and the potential buyer. In addition, this factor often drastically reduces the number of potential candidates for the purchase of that organization.
Maintaining confidentiality during the sales process is another crucial aspect. Entrepreneurs should take steps to ensure that sensitive information about the company, such as business plans and financial information, is only shared with qualified potential buyers and under strict confidentiality agreements. This will help avoid business disruptions and protect the value of the company.
When looking for buyers, owners should seek out individuals or companies that have a genuine interest in the sector and the financial capacity to complete the transaction. This may involve hiring a financial intermediary or specialized consultant to help identify and qualify potential buyers.
It is also necessary to outline a clear and assertive strategy regarding the profile of the prospective buyer, such as whether they will be a financial investor only, to inject capital into the business in order to allow the company to expand, or a strategic investor, who will be interested in acquiring that business, with great expertise in the sector and the activity, in order to guarantee consistent expansion based on a logic of portfolio diversification.
Negotiating favorable terms is essential to ensure a successful transaction. Owners should seek advice from professionals experienced in commercial transactions to help negotiate price, payment methods, non-compete clauses and other conditions that could affect their long-term interests. Negotiations carried out by a professional who is used to dealing with these operations tend to be more effective.
Finally, properly planning the tax aspects of the sale is crucial to minimizing the tax impact on the owners when selling a company. This may involve using favorable transaction structures and considering reinvestment strategies to mitigate the impact of capital gains taxes.
This reflection is also necessary in order to assess how to protect the personal assets of the partners and their families after the transaction, and we cannot neglect to delve into topics such as succession and estate planning, Brazil risk, family pacts, among others.
In summary, selling a company is a complex process that requires care, preparation and expert guidance. Following the precautions described above can greatly increase the chances of a successful transaction and ensure a smooth transition to the next phase of the entrepreneur’s career or retirement.
