The sale of a company or parts thereof is upcoming? Comprehensive preparation is necessary: which relevant documents are available, what still needs to be worked out, how will information be made available. These questions should be answered at the beginning of the transaction in close coordination between the key stakeholders.
Deal preparations often begin with the supposedly simple question of the object of sale. However, this question should not be underestimated, as especially in the case of spin-offs and carve-outs the answer is regularly characterised by high legal and financial complexity. The support of external expertise is recommended for the subsequent definition of the transaction structure and the definition of key purchase arguments (e.g. sales planning). In addition, the compilation and preparation of information relevant to the investor and its provision in a virtual data room can often hardly be covered by internal resources – but are essential components of the deal preparation.
Transparency and pragmatism are essential for us – but no transaction is like another. In many cases, the sale is a big step for the owners, for instance if they have built it themselves. Especially in this case, it is important for us to deal with the ideas and objectives associated with the transaction process in a respectful manner.
Imagine the situation from an investor's perspective: If they feel that there is a lack of procedural preparation on the company's side, the offer at hand is not very attractive. As a result, the number of interested parties or the price may drop. Incidentally, we sometimes find that important data for the transaction is not even available at the beginning – for example, to develop key purchase arguments or a robust business plan. Proper preparation is therefore an indispensable step.
In theory, this is possible. In practice, it is usually the case that there is a lack of expertise and resources to ensure adequate preparation and documentation. Inaccuracies in documentation can be an obstacle on the path to deal completion. At the same time, the shift of internal resources to preparation can lead to bottlenecks in the day-to-day business or significantly extend the preparation time. The involvement of FTI-Andersch ensures the right level of transaction pace and preserves internal resources. In the end, the whole process can also fail due to time constraints.
