Questions and answers
Frequently Asked Questions (Company Sale Advisory)
When is the right time to sell my company?
Generally, the best time is when the company looks its strongest. Going to market during periods when profitability is stable, growth potential is clearly visible, and sector multiples are supportive has a positive impact on valuation.
Should I sell my company completely, or bring in a strategic partner?
This decision depends entirely on your objective. If you are considering a full exit, a 100% sale may be appropriate. However, if you want to grow the company, enter new markets, or accelerate institutionalization, bringing in a strategic partner through a minority or majority share sale may be the better model.
Growth financing means obtaining the capital the company needs for new investments, capacity expansion, exports, or corporate transformation through a new partner. The purpose here is not to transfer the company completely, but to build the right capital structure for growth.
How does the company sale process generally work?
The process consists of calculating the company's value, defining the sale strategy, preparing the company for sale, building the investor list, sharing the teaser and information materials, signing confidentiality agreements, holding preliminary meetings, collecting offers, signing a Letter of Intent, Due Diligence, contracts, and closing.
How are potential investors found?
The most suitable buyer profiles for the company are identified through sector networks, investor databases, financial and strategic investor lists, and domestic and international relationship networks.
How do you present my company to buyers in a stronger and more professional way?
The way to stand strong in front of investors is to present the company through a well-structured investment story. For this, a short and anonymous teaser is prepared first; then, for serious buyers, a comprehensive Confidential Information Memorandum (CIM) containing financial, operational, and strategic information is presented.
What is the difference between a Teaser and a Confidential Information Memorandum?
A teaser is a short summary document used to measure investor interest without revealing the company's identity. A Confidential Information Memorandum (CIM) is the main presentation document shared after a confidentiality agreement is signed, explaining the company in much greater detail.
How do you determine my company's value?
Company valuation is performed by considering financial performance, growth potential, sector multiples, comparable transaction examples, and cash flow projections. This allows you to come to the negotiation table with a data-driven price range, not an emotional one.
What exactly does growth financing mean?
Growth financing means obtaining the capital the company needs for new investments, capacity expansion, exports, or corporate transformation through a new partner. The purpose here is not to transfer the company completely, but to build the right capital structure for growth.
How is confidentiality protected during the sale process?
Confidentiality is critical in this process. The company's name, financial details, and strategic data are shared only with serious and filtered investors who have signed a confidentiality agreement (NDA). This prevents unnecessary uncertainty among employees, customers, and suppliers.
How can I prevent my company from being sold below its true market value?
To do this, the company's strengths and weaknesses must first be analyzed correctly. Managing a competitive investor process, avoiding dependence on a single buyer, and proceeding with a professional valuation help optimize the sale price.
How are price and terms negotiated with buyers?
In a sale process, not only the price but also the payment method, closing conditions, installment structure, performance-based additional payments, and seller warranties are on the table. For this reason, professional negotiation management directly affects the total transaction value.
At what stage does the Letter of Intent (LOI) come into play?
After the first offers are received and the parties come close on the main commercial terms, the LOI is signed. This document sets out the price, payment plan, exclusivity, review period, and basic transaction framework, forming the basis for the next stages.
How binding is the buyer's offer?
A Letter of Intent is usually not fully binding; however, some provisions such as exclusivity, confidentiality, or cost sharing may be binding. Therefore, every signature at the LOI stage must be structured carefully.
What is expected of me during the Due Diligence stage?
At this stage, the buyer examines the company in detail, including financial records, contracts, customer structure, tax files, employee information, and operational processes. Preparing an organized data room on the seller's side is very important for a fast and confidence-building process.
If an issue arises during Due Diligence, does the sale get cancelled?
Not every finding means the sale will be cancelled. Depending on the size of the identified risk, price revisions, additional protective clauses in the contract, or corrective actions before closing may come onto the agenda. The important point is not to leave surprises until the last minute.
What are the most common mistakes in a sale process?
The most common mistakes are going to market unprepared, failing to present clean financials, focusing on a single investor, managing confidentiality loosely, and not clarifying post-sale roles from the beginning.
Is a company sale only carried out as a 100% transfer?
No. Depending on the transaction structure, different models may be applied, such as a minority share sale, majority share sale, phased transfer, bringing in a new partner, or receiving investment through a capital increase.
Company valuation is performed by considering financial performance, growth potential, sector multiples, comparable transaction examples, and cash flow projections. This allows you to come to the negotiation table with a data-driven price range, not an emotional one.
Can I continue to work at the company after the sale?
Yes. In many transactions, the existing shareholder or founder continues to remain in management for a defined transition period. This provides a secure transition in terms of both knowledge transfer and trust for customers and employees.
How are employees and customers affected by this process?
Yes, this is possible with the right structuring. While the company shares are transferred, the real estate can remain with you and a long-term lease agreement can be established with the new structure. This allows you to generate regular rental income in addition to sale proceeds.
What preparations should I make before putting my company up for sale?
Clean and understandable financial statements, up-to-date legal documents, a clear shareholding structure, an organized contract archive, and a strong investment story are the foundations of pre-sale preparation. Companies that go to market prepared move faster and receive stronger valuations.
What does working with an advisor give me?
The advisor positions your company correctly, filters suitable investors, manages the process confidentially, defends the valuation, and creates balance in negotiations. In short, the goal is not merely to find a buyer, but to close the right transaction on the right terms.
What main document is signed at the end of the sale process?
After all commercial and legal agreements are completed, the main document signed is the Share Purchase Agreement (SPA). Depending on the transaction structure, this may be accompanied by a shareholders' agreement, service agreement, lease agreement, and additional protocols.
How long does this process take on average?
Depending on the size of the company, its level of preparation, and investor interest, most transactions are completed over a period ranging from a few months to a longer timeframe. The most important factors that accelerate the process are proper preparation and organized data flow.
Why do company owners want to sell their companies or shares?
A company sale is not always driven by necessity. Retirement planning, generational transition, health reasons, moving into a different sector, bringing in a new partner for growth, or converting the company into cash at the most suitable value are among the most common reasons.