1st tip: Clearly define (and agree on!) the objectives of the shareholders
Before you start the sales process, it is crucial that all shareholders pull in the same direction. Clarify the objectives of the sale together: should the highest possible price be achieved, or are other factors such as preserving jobs more important? A common understanding and clear objectives are the basis for a successful sales process.
2nd tip: Understand value drivers and align your strategy accordingly
Identify the key value drivers of your company. What makes your company attractive to potential buyers? This could be stable customer relationships, innovative products or a strong market position. Focus your corporate strategy on further strengthening and emphasizing these value drivers.
3rd tip: Give priority to the focused implementation of the strategy
A clear strategy alone is not enough – it must also be implemented consistently. Make sure that all areas of the company are aligned with the implementation of the defined strategy if you are planning to sell your company. This often requires targeted change management and a willingness to put short-term measures on hold in favor of long-term goals.
You might also be interested in this if you are selling your company
In our blog, we regularly write on topics relating to increasing company value and selling companies. If you would like to sell your company, you may also be interested in these three articles, for example:
4th tip: Arrange succession well and establish it successfully
An orderly succession is a decisive factor for potential buyers. Ensure that the management of the company is also secured after your departure. This can be done by promoting internal talent or hiring an external successor. A transparent succession plan increases the confidence of buyers and can have a positive influence on the sale price.
5th tip: Prove your success with figures before you sell your company
Potential buyers want to see that your strategy is working. Therefore, make sure that you can prove the success of your measures with solid figures. This includes both key financial figures and operational performance indicators. Sound reporting builds trust and highlights your company’s potential. An example of how you can see the success of a strategy in figures is the launch of a new product. Show how this product has led to a significant increase in the sales pipeline and ultimately contributed to growing sales.
In addition, the financial figures for the current financial year (current trading) are highly relevant immediately before the sale. These current figures provide potential buyers with a clear insight into the current performance of your company and confirm the positive development that your strategy has brought about.
6th tip: Recognize and address value risks at an early stage
Every company has risks that can reduce its value. Identify these risks at an early stage and develop measures to minimize them. This can include hedging against market fluctuations, diversifying the customer portfolio or optimizing internal processes. A proactive approach to risks increases the attractiveness of your company and therefore the sales price when you sell it or obtain valuations.
7th tip: Take enough time if you want to sell your company
In our experience, a carefully planned strategy over a 2-3 year period can lead to a significant increase in the value of your business. Instead of selling your business after just 12 months, it may make sense to wait up to 36 months to realize a sale price of up to 240% of the original potential value. This patience and strategic focus can pay off with a significantly higher return. The right advice from experienced experts can provide essential support in identifying and implementing the optimum time and the best measures to increase value.
Conclusion: With patience and strategy to the best sales price
Selling a business requires careful planning, strategic action and patience. By following the tips presented here, you can significantly increase the value of your business and achieve an optimal selling price. Take the necessary time to clearly define your goals, implement your strategy and secure professional support. This will ensure that your business remains attractive to potential buyers and that you achieve the best possible price.
