Sale of companies
The sale of a company is potentially the most important decision that a businessman has to take, an event that capitalizes the value of the entity generated throughout its lifetime. This is why it is fundamental to have the best team of professionals on hand to ensure that the operation is closed at the expected price.
Firstly, our objective is to calculate the true value of the company before we can establish the way of maximizing its value. Secondly, a sale price has to be arranged and a buyer found.
The value of the result comes from a detailed and complicated analysis that depends on the subjectivity of the person who undertakes this task. However, the price relates to the actual cost of an object, not to its value. A satisfactory compromise consists of selling at a higher price than the business is actually worth.
At PRETIVM we have a team of highly-skilled professionals with ample experience in the buying and selling of companies. At each phase of the process, these people will be on hand to advise and guide you, offering their expertise and our resources when needed. Help will be offered to overcome the numerous obstacles that the buyers try to use during the negotiation process with the intention of ensuring the best price for you.
Thanks to our strong network of contacts of both institutional and capital risk investors, we are certain that we can find the most appropriate buyer for you.
Furthermore, we offer a mediation and advisory service for the sale of those assets which are not deemed strategic or profitable in order to obtain liquidity or to increase the profitability.
How we work?
Our aim is to achieve the highest price for our clients’ companies by means of a strategy that maintains the maximum level of confidentiality throughout each stage of the sale process.
At PRETIVM our operation is structured in four phases:
Phase I: Analysis and project feasibility study.
During this first phase, we analyze the company and examine whether achieving the highest price is feasible. If this is not possible in the current situation, we will create an action plan with the necessary changes to achieve the highest valuation of the company.
Phase II: Evaluation and selection of potential buyers.
After the sale has been decided, a valuation of the company is carried out in order to determine its intrinsic value or how much it is actually worth. What we achieve in reality is a value range on which we are able to base our negotiation strategy. This will in turn allow us to achieve the highest price.
At PRETIVM we devise financial projections based on a detailed analysis of each company and its sector. This is carried out while paying close attention to the critical aspects needed when determining the value of a company.
Once the evaluation has been performed, we devise a teaser or blind profile, which is nothing more than a brief summary of your company without going into detail or giving information that may reveal the name of the company on sale.
Following an analysis of potential buyers, the blind profile is published with the objective of creating interest in the company and attracting possible investors.
Phase III: Negotiation.
After receiving a letter of interest from potential buyers, a confidentiality contract is prepared and signed with the intention of protecting the interests of the current owners.
Following this, a sales notebook is prepared which is a document that contains a detailed description of the company as well as all the information that a potential buyer may need in order to take a decision. This document is of fundamental importance for a transaction to be successful as it is the way that the company presents itself to potential buyers. The preparation of such a document should be in the hands of professionals who are able to highlight the strong points of the company and to value them.
Following the presentation and analysis of the sales notebook, negotiations with the buyers begin which conclude when a non-binding offer is reached. Subsequently, once the sales price has been agreed, a binding offer is negotiated.
Phase IV: Closure of the operation.
The binding offer is conditional on the auditor’s report or “due diligence” with the objective of checking that the data used during the process is true and correct, and offers a reliable picture of the company. The existence of qualifications may lead to later price modifications.
The sale process finalizes when the contract is drawn up and signed by both parties.
