A manager who is about to sell his company must be prepared to answer a buyer’s questions. Here is a list of the questions that must be prepared.
As a director, one who is preparing to sell his company must develop a business strategy. It is therefore necessary to list the possible questions of a buyer and to answer them.
Selling your business: answering a prospective buyer’s questions
1. Why sell the business?
Whether he has decided to sell his company because of retirement or a change of career, the manager must be transparent to a buyer. Also, if the business is on the decline or facing any difficulty, it will also be necessary to be honest, under penalty of losing all credibility when a financial diagnosis of the company has been established.
2. Is the company healthy and profitable?
If the buyer will determine it with his own tools, the manager who wishes to sell his company must also prepare the arguments in favor of his business. Numerous criteria must be gathered: intellectual property, salary strength, specific skills of the employees, solidity of the suppliers, maturity of the market, etc.
3. What is its market position?
Is the company uniquely positioned? If your products or services are particularly innovative and differentiate you from your competitors, you should promote them to your buyers. Also show that your business processes are strong enough to keep your company in the market after the sale.
4. Does the company have an established customer base?
Whoever wants to sell his company must prove that his customer base is solid and loyal. Less time and energy spent on prospecting increases the value of a company. This is especially true for businesses with a limited number of active customers.
5. What about the lease?
If the business depends on its location, the lease is a critical factor. It is best for the transferring manager to ensure that the lease will be renewed with the new manager. Check the terms, such as personal guarantees or the deposit issue. Ask the landlord what is required for him or her to accept the new executive.
Selling your business: don’t hide anything
Throughout the selling process, a buyer will obviously want to make sure there are no skeletons in the closet. Anticipate complications, be upfront with buyers and respond promptly to their requests. Some of the most common difficulties include legal liabilities, financial issues, human resources and customer service.
To assist you in the transfer of your company, call on Actoria, a team of professionals specialized in the transfer of companies and dedicated to your project.
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.
IRCE takeover training led by ACTORIA