Benchmarks are key factors, or basic criteria to maximize the chances of selling your company successfully.
Here is a brief overview:
| Criteria | Negative situation | Positive situation |
|---|---|---|
| Age of entrepreneur | above 65 years | 40-60 years |
| Reasons for the transfer | economic situation, health | planned sale, planned business succession |
| Pension benefit | based-execlusively on business profit | independent of business |
| Long-term strategy of the company | not defined | relevant strategy and market positioning are specified |
| Investment for the future | only the most necessary replacement investments in the past years | investments in buildings, machines, equipment, new markets |
| Employee qualifications | qualified for current work | oriented toward the future of the industry |
| Information source | only tax consultant | M&A advisor, tax consultant, attorney |
| Search for the successor, buyer | only in the immediate vicinity, only one medium used | Mandate with a nationally and internationally operating M&A advisory firm |
| Support in determining the firm value | only one institution | M&A advisor, tax consultant and auditor |
| Leeway for price reduction | not defined | defined, purchase-price corridor |
| Type of transfer | fixed to a certain type | variable, goal win-win situation |
| Great significance of fiscal aspects | yes | no, but determined by the individual case, not main target |
| Payment type | only single payment possible | other payment types are possible |
| Information about the transfer | publicly known | only to the parties directly involved and their advisors |
| Work with the successor | only for a short time | over several months, consulting agreement |
| Support during business transfer | only by one institution, e.g. tax consultant | also by several expert advisors, post-merger support |
| Scheduling the company transfer | ||
| First considerations | less than 2 years | 5 years |
| Concrete planning | less than 3 months | 6 months - 2 years |