Corporate sales

Since it is not possible to determine the value of a company in an objective way, much depends on the organisation managing the sales transaction. The goal, generally, is to achieve the highest purchase price. To accomplish that, the company to be sold must be made not only attractive but also marketable. The seller must choose the most appropriate sales format and ownership structure – besides finding potential buyers. Managing the transaction and, later, providing investment consultancy services are also part of the sales process.

Selling of a company should be approached in the same way as the marketing and sales process of a specific product or service. The company has to be prepared for selling both internally and externally. Also, attractive professional materials should be prepared displaying investment opportunities. The right method of selling and the right time have to be found and after that the broadest range of potential buyers, and a competition developed between them ensures the optimal conditions of sales for the seller.

How much is my company worth?

The value of a company is based on the combined value of its assets, market position, growth potential, special know-how, the skills and expertise of its management and staff, but its actual value is determined on the market, as a result of the sales transaction.

Nevertheless, the value of a company can be measured using financial mathematical methods. Such methods include, for instance, calculating the present value of the company’s future cash flow, or making a comparative assessment based on the evaluation indices of companies which conduct similar business activities and which are listed on the stock exchange.

The professionalism with which the sales process was managed has a great impact on the actual value realised when the company is eventually sold. This includes aspects such as the quality of the preparation for the sale, the intensity of the competition generated among potential buyers, and the terms agreed upon regarding the warranties provided by the seller.

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