The health and economic shock caused by the Covid-19 has a strong impact on companies and their organization. Even if it is very difficult today for the economic actors to project a medium and long term business plan, we think that the current crisis represents an opportunity, for the leaders who wish to transmit their company, to value their working tool. Or how to turn the crisis into an opportunity to enhance the value of the company in view of a future sale.
1. Valuing coping skills
Faced with this crisis, many companies have reviewed their way of working and managing their teams. For some of them, the use of telework was a natural step. For those who did not have processes in place to manage telework, the adaptation is being done at a rapid pace. Faced with an unprecedented situation, some managers are trying to take advantage of this moment of crisis to test new forms of organization that are less dependent on physical meetings and the famous meetings.
It is therefore necessary for organizations to manage their business in a different way, to manage their teams with more flexibility, while keeping a close management with involved employees. If you were planning to transfer your company before the crisis, you may wonder how to adapt this project to the new situation.
A buyer, with a view to taking over your business and developing it, will be sensitive to the adaptability of the company and its employees, especially in an uncertain economic context. When the economic situation becomes favorable again, you will be able to value these adjustments which will have enabled you to bounce back as quickly as possible and which will have demonstrated your resilience.
Read also: 3 criteria that make a company attractive to a buyer
2. What investors/recipients are looking at
Once the crisis is over, a buyer will estimate the value of your company based on its ability to function in a troubled context. This is a reason to carry out a 360° diagnosis of the company and to identify all the obstacles (financial, legal, commercial, organizational, etc.) to a possible transfer.
Check certain strategic points: in addition to the possibility of working remotely, the buyer will evaluate the supply chain, the financial strength of the main customers, the company’s ability to control operating costs, the state of its production facilities… and even the conditions of the main contracts that commit it.
In short, you can take advantage of this complicated period to review and deepen the strategic points that a potential buyer will not fail to analyze…
3. Putting yourself in the conditions for a recovery
We believe that a dangerous strategy would be to simply wait for market conditions to improve before re-launching a transmission project, without taking into account the consequences of the current crisis.
1) Because there will certainly be a “before” and an “after” crisis A potential buyer will be even more vigilant on certain points as seen above.
2) A buyer will value your company on the way it has adapted to a new context.
3) Finally, your competitors may have taken advantage of this moment to improve their competitiveness at the time of the takeover, and for some of them even develop new products or services (windfall effect).
For all these reasons, if you are determined to pass on your business, don’t be a wait-and-see type. Make this moment an opportunity to work on your file. Actoria, specialist for more than 25 years in business transfer, accompanies the projects of transfer, opening of capital and business mergers. Contact us.
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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They trust us
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.
Why prepare a business transfer?