Maximize purchase price by using M&A tools

Every entrepreneur who invests his money in company shares expects an increase in the company's value, but at least an appropriate return. In the event of poor performance or for other reasons, selling the company can be a sensible option. The seller usually wants to get a maximum purchase price and find a good, financially strong buyer. Ideally, he should negotiate fairly and easily and at the same time complete the transaction with great determination.

It is known that the main drivers for maximizing the purchase price in one (1) good preparation of the M&A transaction and (2) quick implementation from the buyer's address.  

However, due to time constraints, many M&A processes are not ideally set up and investors are rushed to be addressed. The seller only realizes the damage if the first good investor leaves the process due to inconsistencies between the data room and the Info Memo. It would have been avoidable through the use of data consistency-assuring M&A tools and careful preparation.

With excellent preparation, the purchase price can be higher than the objective market value, especially if timely implementation of value-enhancing strategic initiatives or the development of sufficiently concrete earnings potential. Short lead times are good for M&A consultants, but not always for sellers.

 

 

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