Finding the Ideal Seller for Your Needs
When it comes to ensuring a successful business sale, having the right team by your side can make all the difference. In a recent series of interviews with local experts in Luxembourg, we gained valuable insights into the world of company transmission.
According to M&A specialists, the process is generally smoother when initiated by the seller rather than the buyer. Joubin Bashiri from Tenzing Partners and Gregoire d’Avout from EY emphasize the importance of a seller’s solid financial performance and balance sheet for a successful transaction. Bashiri notes that working with buyers can be challenging due to competition, while he highlights the long process of transactions that his firm is involved in.
Access to a broad network is crucial in this field, with Tenzing Partners relying on relationships with potential buyers. As part of Globalscope, an international network of M&A firms, they have access to a wide range of interested parties. This network also provides valuable data on previous transactions and market trends.
Gregoire d’Avout from EY takes a proactive approach to finding potential sellers, actively seeking out companies in sectors with promising growth. He emphasizes the importance of understanding the mindset of the seller and assessing the business’s viability for a smooth transaction.
Georges Zahlen from Axiomatic highlights the challenges of buying smaller companies, noting the importance of the owner’s personal involvement in operations. He also points out that competition is fierce for larger businesses, with private equity firms and industrial buyers vying for acquisitions.
In terms of transaction types, Bashiri suggests that share deals are the most common and convenient for sellers. However, asset deals may be more financially appealing for buyers, allowing for the amortization of assets. It’s essential to find the right balance between seller and buyer interests in the transaction.
Overall, the world of company transmission is complex and requires a strategic approach. By working with experienced professionals and understanding market trends, entrepreneurs can navigate the process successfully.
