1° What is BeAlSo?
The Be Al So, you have probably heard of it: “Best Alternative Solution” also called “Best Fallback Solution” or its acronym BEALNE “Best Alternative To a Negotiated Agreement). This method, written and detailed in the 80’s by Roger Fisher and William Ury, has existed since the dawn of time. This method consists in preparing the outcome of a failed negotiation or in planning an acceptable exit for both parties.
This tool is presented in textbooks as an effective way to succeed in negotiation, especially – and this is where it was proposed – when “the other side is more powerful”: “A negotiator who has a BEALSO,” write Fisher and Ury in How to Negotiate Successfully (1982), a translation of their best-selling book Getting to Yes (1981), “is therefore better able not only to determine the minimum agreement he can accept, but also to obtain it. Seeking his MEASURE is certainly the most effective course of action he can take when confronting a seemingly more powerful negotiator.
2° The transfer of position
In any classic negotiation, the position of power changes instantly from one party to the other when the order, agreement or contract is signed. Until the signature, the buyer knows the price he is willing to pay to commit himself, he knows the price he is able to accept, the seller is dependent on his decision. It is the customer who, at a given moment, will accept the seller’s offer or will impose conditions that the seller will accept (or not). The seller is ready to commit to his offer from the beginning of the negotiations, since he is usually the one who wrote it. He therefore expects to receive demands from the buyer, such as: Price reduction, payment terms, manufacturing or delivery times, warranty and after-sales management etc.
In this case, the seller can rely on a BeAlSo that he will have prepared beforehand. The balance of power is reversed as soon as the signature is effective. As soon as the contract is signed, the seller is no longer in a state of uncertainty and now knows the conditions that have been agreed. In general, they are within the limits he had set himself. The uncertainty changes sides at this precise moment, because the buyer does not know if he could have paid less, obtained more services, if he went to the maximum of the possibilities of negotiation.
3° What about the sale of a business?
Selling your business is a little different, it is unique, even if the customer can find similar ones, you must remain his favorite target. While it is true that it is not always easy to find buyers, once one or more players are interested in the business there is a strengthening of the seller’s position. There is only one company to sell, while several buyers are potentially interested. The BeAlSo of each of them are then divergent. The seller must be able to determine precisely the conditions he would be ready to accept and be able to fall back on a second target as soon as the main target is considered to be failing. This is why a meticulous preparation is essential in terms of valuation as well as in terms of strategy. The BeAlSo will be built with the support of the advisor chosen for this sale.
In the case of the buyer, it will be necessary for him to fall back on several targets, although in general this situation is more difficult to apprehend for the buyer than for the seller, if he is well accompanied.
Pierre-Christophe PROT
Actoria Conseil
FAQ
What services does Actoria provide?
Actoria specializes in mergers and acquisitions advisory for small and mid-sized businesses. Our services include company sales, succession planning, buy-side and sell-side mandates, business valuation, financial diagnostics, investor sourcing, negotiation support and full transaction execution until closing.
Who does Actoria work with?
We support SME owners, family-business leaders, shareholders, entrepreneurs, private investors, and corporate groups seeking to acquire or divest businesses in Europe and North Africa.
In which countries does Actoria operate?
Actoria has local teams in Switzerland, France, Belgium, Luxembourg, Morocco and Tunisia, and manages cross-border deals across Europe, Africa and the Middle East through an international buyer network.
How many potential buyers are in Actoria’s network?
Our proprietary network includes more than 6,500 qualified industrial buyers, strategic acquirers and financial investors, allowing us to match sellers with high-quality counterparties.
Does Actoria support confidential business sales?
Yes. Confidentiality is fundamental to our process. All discussions, documentation and buyer approaches are handled discreetly to protect the interests of the seller and the business.
What industries does Actoria cover?
We advise companies across multiple sectors, including industrial production, manufacturing, services, IT and digital, healthcare, logistics and distribution, construction, and specialized B2B services.
What is the typical size of businesses Actoria represents?
We primarily advise SMEs with revenues generally ranging from CHF/EUR 2 million to 100 million, depending on jurisdiction and market.
How does Actoria determine the value of a business?
We perform detailed financial and strategic analysis using multiple valuation methods, including discounted cash flows, market multiples, asset-based methods, and sector benchmarking.
How long does a business sale process take?
A standard transaction typically takes 6 to 12 months depending on market conditions, buyer interest, company complexity and diligence requirements.
Why choose Actoria as an M&A advisor?
With over 20 years of experience, a senior advisory team, a structured methodology, and an extensive network of qualified buyers, Actoria delivers independent advice, tailored execution and strong transaction results for SME owners.
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Actoria has swiftly identified the inefficiencies in our company’s processes, proposed optimizations, and implemented them effectively. Furthermore, Actoria has provided outstanding support throughout all stages of our company’s transfer to a group within our industry. This includes preparing our company, identifying potential buyer partners, and negotiating up to the point of the partner’s capital entry. Actoria delivered expert negotiation skills and secured a valuable partner for us.
We were quite anxious to find a solution, as my health was deteriorating rapidly. Actoria’s consultant played a crucial role in the successful completion of my company’s sale. Their involvement was essential in executing this delicate project, as it impacted our daily operations. This project, which was close to my heart and increasingly necessary, was made possible thanks to the decisive momentum provided by Actoria.
First, Actoria conducted a thorough assessment of our company’s strengths and weaknesses, and then suggested incorporating these insights into our management approach to enhance our company’s value. Actoria led this project alongside my entire management team, enabling the involvement of all key personnel, and swiftly implementing a solution that allowed an investor to enter our capital. This was complemented by the inclusion of some of my company’s executives and a bank.
I couldn’t be happier with the result, but I am especially pleased with my decision to work with Actoria. The success of this mission was the direct result of Actoria’s hard work and sophisticated professionalism on my business. From our first meeting through the reasonable preparation process, all phases of the transfer, legal and financial operations were managed by the Actoria team. Their skills were even more evident when the complexities of this transaction were at its peak.
Hiring Actoria made the difference to achieve my original goal and move on to my next professional challenge. Selling a company like AMR in this market has not been an easy task. Actoria has demonstrated perseverance in identifying good buyers with knowledge of my industry in order to continue the development of my business, and has provided professional advice throughout the process.
The company’s sales process was a lengthy and challenging journey. The professional support from Actoria made this endeavor much more manageable. I would like to extend special thanks to the consultants from Switzerland and France for their highly effective collaboration. Your consultants proposed creative solutions during the negotiations, which effectively overcame significant obstacles in order to finalize the agreement. Their experience, knowledge, and professionalism played a crucial role in the success of this transaction.
Business transfer: a hot economic topic