Corporate Sales
FLB Partners has extensive experience from over 100 transactions and offers advice and support throughout the sale process, from the preparation phase to the new owner taking over ownership.
Our Business Sales Services
- Preparations to get the company ready for a sale.
- Indicative valuation and Expectation Value.
- Positioning and the production of information materials and marketing.
- Identification of relevant buyer categories and buyers.
- Dialogue with buyers and Negotiating commercial terms.
- Evaluation of indicative bids.
- Support through due diligence process.
- Final hearing
- Company Analysis: Analysis of the financial and operational position and identification of strengths and potential for improvement.
- Positioning: Analysis of what drives value and what is perceived as attractive among potential buyers.
- Business plan: Development of a well-founded business plan with associated budget and forecast together with concrete initiatives.
- Order and order: Ensure that there is order and order in the company, among other things, accounting, contracts and formalities.
- Improvement measures: Implement optimizations and improvement measures based on identified risks and deficiencies.
The preparatory phase
The preparation phase is central to ensuring that the company is ready for sale and that the sales process is carried out in an optimal way. During this phase, the strengths and weaknesses of the business are identified, and the necessary measures are taken to maximize the value of the company in sales.
Indicative valuation and expectation value
Indicative valuation and expectation value means that the seller receives an estimate of what the company can be valued at in a sales process. This includes, among other things, analysis of historical performance, market potential and comparisons with similar companies in order to create a realistic picture of the valuation that the seller can expect in the event of a sale.
- Discounted cash flows (DCF valuation)
- Multiple Valuation
- Substance Valuation
- Targets of screening: Identification of relevant buyer categories and potential buyers based on strategic fit and financial capabilities.
- Teaser and information memorandum: Information materials are created that describe, among other things, operations, financial position and growth opportunities.
- Buyer Contacts: Discussions with selected potential buyers are being initiated.
Marketing and contact phase
When the company is ready for a sale, the marketing and contact phase begins in which one or more potential buyers are contacted. Often it is wise to contact more than one potential buyer to create competition and optimize sales conditions.
Evaluation of indicative bids
After potential buyers have been contacted and meetings with the buyer candidates have been conducted, the seller will hopefully receive one or more indicative bids which will then be evaluated. The indicative bid presents the basic terms of the deal where many aspects, in addition to valuation, need to be weighed in such as purchase price structure, possible reinvestment requirement and continued commitment.
- Purchase price and purchase price structure: In addition to valuation, the purchase price structure also needs to be evaluated where additional purchase price is commonly used. This means that the seller receives part of the purchase price initially when ownership passes to the buyer, and the remaining part in the future provided that certain pre-determined achievements have been fulfilled, such as the fulfillment of budget and forecast targets.
- Declaration of Intent: When buyers and sellers agree on the terms of a possible deal, a letter of intent is often concluded between the parties describing the overall terms and obligations before due diligence and final agreements are entered into.
- Exclusivity: In some cases, buyers and sellers agree on exclusivity for a certain period to allow the buyer the opportunity to conduct due diligence without competition from other buyers.
- Financial Review: The financial statements, balance sheet and cash flow of the company are reviewed.
- Legal review: Agreements and compliance are reviewed along with any disputes and commitments.
- Operational review: The company's operational activities such as efficiency, production processes and supply chains are reviewed.
- Other review: Depending on the industry and the size of the transaction, the buyer may also want to review additional areas such as commercial auditing, IT/tech, CSR, and security control.
Due diligence
During due diligence, the company is examined in detail by the buyer for the purpose of verifying the information provided during the sale process. It is both a time-consuming and important phase in which the buyer gets access to detailed information. During this phase, it is common for the buyer to hire external advisors such as financial and legal advisors and tax advisors. After conducting due diligence, a final negotiation takes place between the buyer and seller based on the outcome of the due diligence.
Final processing, signing and access
After conducting due diligence, the process moves to final negotiation, where the final details are determined. After that, contracts are signed and formal ownership passes from sellers to buyers.
- Signing of final agreements: Final agreements are established and signed together with other necessary documents.
- Admission: Formal ownership passes from seller to buyer. In some cases, signing and access take place simultaneously while in other cases they take place on separate occasions depending, among other things, on the purchase price structure or whether there is a commitment that the seller has to deal with before access.
