Case study

Sale of an owner-managed production company (approx. 100 million turnover) to a third party (advising the seller)

Task

A medium-sized production company (approx. 40 million sales) with several family trunks has been managed by external managing directors for several years. In the future, the owner families will be unable to perform either the shareholder or the managing director function to the extent required. Due to the changing market situation, substantial financial contributions from the shareholders will be required in the near future. With these backgrounds, the family trunks decide to sell the company as a whole. The aim is, on the one hand, to transfer the company in a future-proof manner for the employees and the location and, on the other hand, to achieve an appropriate purchase price for the company.

Solution

With the involvement of the management and the shareholders, an M & A agency was commissioned to search for a suitable buyer together with all parties involved. In parallel, a company valuation was carried out by us. After concluding confidentiality agreements with individual interested parties, indicative purchase offers were obtained and letters of intent were negotiated and concluded with the main interested parties. Subsequently, the due diligence process was accompanied. Negotiations on the purchase contract were then conducted with the remaining interested parties and the purchase contract was concluded with the decisive interested party at the notarization meeting, taking into account the essential interests of the sellers.

Service areas
Flowchart
  1. Structuring of the overall process
  2. Preparation of a company valuation to determine a purchase price
  3. Preparation of an information document on an anonymous basis
  4. Search for interested parties together with external partner
  5. Conducting initial interviews with interested parties after signing a confidentiality agreement
  6. Conclusion of a Letter of Intent (LOI)
  7. Further negotiations with the interested parties
  8. Accompaniment of the due diligence
  9. Negotiation and drafting of the company purchase agreement
  10. Tax support of the company and the shareholders during the entire sales process