All posts by Abraham

The role of a Business Owner

It is undeniable that all companies have an impact on the society they perform their activity in. Following this idea, businessmen are then figures of leadership and influence for whom they surround. Therefore, the business owner has a huge responsibility: giving back to society what they have already received from it.

During his professional career, the role of the business owner as a leader is mainly represented by two different aspects:

Provide jobs for the rest.
Create a positive impact through the execution of his company’s mission.

However, there will come the point where the businessman, for various reasons, won’t be able to keep up with the necessities of his company. It is at this moment when his role must switch to be ready to embrace the extended responsibilities this situation brings.

Now, the primary mission for the business owner should be guaranteeing that the benefits his company brings to society persist through time, even if this means not being the one carrying out this action. In other words, he must find the ideal counterpart for his company, one that can assure the proper execution of the business mission.

Having said that, it is worth mentioning that the key to the selling of a business is the process of finding the best counterpart. The first step, and the most important one, is having the support of the correct advisor to complete this complex journey.

The selling of a business is no easy task, much less something that should be left in hands that are not strictly professional or specialized in the sale of companies.

What to look for when hiring a financial advisor?

Once the business owner decides to sell his company, it is imperative he must be advised appropriately. The search of the ideal buyer is a complicated process that requires extensive experience and specific knowledge. In like manner, each step in the selling process is vital as a mistake can conclude in the total failure of the operation. Hence, it is essential to consider what are the qualities that enable an advisor to guarantee a successful selling.

The advisor or finance boutique must accomplish specific requirements to be considered as the ideal advisor for a possible client. These requirements are the following:

A robust and trustworthy confidentiality policy.
A transparent and accessible work methodology.
An extensive track record of past successful operations.
A strong and consolidated network of international partners.

ONEtoONE counts with an international network present in over 15 countries. We have completed over 1,500 mandates and count with a global network of partners that fully trust in us.

If you are a business owner and find yourself in this situation, do not hesitate to contact us. Our team of advisors will take care of your operation to deliver the best results possible.

Dominique Gazel-Anthoine: “Each closing is my most successful operation”

In ONEtoONE we deeply care about the opinion of our partners and their level of satisfaction with us. That is why we have interviewed some of them to have a better picture of their personal opinion.

On this occasion we have asked a few questions to our partner Dominique Gazel-Anthoine, who has been part of ONEtoONE for over fifteen years now with an extensive professional career behind him.

Can you tell us a little bit more about your professional career?

I am a Civil Engineer from the French Ecole des Mines de Nancy, with a MAB from HEC. I have count with both backgrounds: industrial , were I worked as Energy Project Manager for Siemens in Brazil ; and financial, were I worked in Société Générale Corporate & Investment Banking in BNP Paribas.

I also registered as Listing Sponsor (Asesor Registrado) on the Spanish Alternative Stock Market (MAB). Since end of 2005 I have been working in ONEtoONE Corporate Finance.

What is the one thing you enjoy more about your profession?

It is always gratifying, after many months of work, to see that our client’s goals are achieveded. I always focus intensely on guiding my clients to achieve their goals and reach their dreams.

What has changed in your professional life after you joined ONEtoONE?

I started working on MidMarket deals when joining ONEtoONE and the added value of the M&A advisor is much higher in the specific segment. The presence and support of our back-office is definitely an advantage.

Can you tell us which has been your most successful operation?

My success is tied to my clients success; each closing is my most successful operation. That is why it is difficult to choose one operation in specific. Every deal closed is a clients dream fulfilled, therefore, it becomes my most successful operation.

Find out the opinion of others about a successful operation!

Jean Luc Bertrand, expert in M&A transactions increased the size of the deals at OnetoOne

In ONEtoONE we deeply care about the opinion of our partners and their level of satisfaction with us. That is why we have interviewed some of them to have a better picture of their personal opinion. On this occasion we have asked a few questions to our partner Jean Luc Bertrand, who is an expert in M&A transactions and has been part of ONEtoONE for over three years now with an extensive professional career behind him.

Can you tell us a little bit more about your professional career?

All along my professional life I combined operational responsibilities with the management of M&A transactions. First, I was an auditor for 5 years in KPMG where I mainly dealt with transaction services assignments. Then I became CFO and member of the Executive Committee of large corporations.

I started in Yves saint Laurent in 1987. I was involved in the Couture Division financial restructuring, then in the listing of the holding company of the Paris stock exchange; lastly, I worked on the merger between YSL and Sanofi. Other operation of mine was the Sanofi Beauty Division in 1993 subsequent to such merger. Also, I contributed to reducing total invested capital by M€ 600 over 5 years through innovative financial transactions in Chargeurs Wool.

I pursued a double role in 2000 as an entrepreneur where I was the co-founder of Selective Beauty (a start-up in perfumes and cosmetics which sales went from 0 to M€ 150 after 6 years of uninterrupted growth). Following a successful LBO I sold my shares, created my own small M&A boutique and co-founded Francession network in 2010 before joining ONEtoONE.

Since I have been working in M&A, I advised more than 30 transactions in the small/mid cap market including cross border deals in various industry sectors (mainly in perfumes, cosmetics and luxury goods sectors which account for 50% of my activity).

What is the one thing you enjoy more about your profession?

Certainly, the diversity of the missions. I also much appreciate the strategic human relationship dimension of any M&A deal. It is also a huge responsibility to assist my clients for what is, for most of them, the deal of their life. My past experience also helps me to understand client’s needs and expectations. It is a real pleasure to share and enrich my own experience and keep friendly relationships with most of my clients after the closing.

What has changed in your professional life after you joined ONEtoONE?

ONEtoONE certainly offers more support in back office and the international network is no doubt a plus. It also permitted me to increase the size of the deals, I am able to advise even if I remain focus on small caps.

Can you tell us which has been your most successful operation?

A delicate question, all the deals are interesting. I will say the last one, which was last week. We sold a niche food company releasing a bit less than M€ 20 in sales.

Find out how the professional life of our Italian partner has changed at OnetoOne!

Bernar de la Hera, expert in business solutions: “Working in ONEtoONE brings you more professional freedom”

In ONEtoONE we deeply care about the opinion of our partners and their level of satisfaction with us. That is why we have interviewed Bernar de la Hera, expert in business solutions, to have a better picture of his personal opinion.

On this occasion we have asked a few questions to our partner Bernar de la Hera, who is specialized in the IT sector and has been part of ONEtoONE for over six years now with an extensive professional career behind him.

Can you tell us a little bit more about your professional career?

Even though I studied a degree in industrial engineering with a specialization in energetic techniques, from the beginning of my professional career I focused on information technologies. A very interesting start 35 years ago, when computing had barely been introduced in businesses, and therefore any solution implemented reduced costs and increased productivity in spectacular ways. I’ve always focused my activity in the sector of business solutions, having been the managing director of Baan, a Dutch company leader in the business solutions sector in the 80’s and 90’s. It was incredible seeing all the advances made in companies such as Fagor, CAF, ABB or Gamesa. From there, I shifted to technological consulting as the director of the energy department at UNISYS, where I worked for big accounts such as REPSOL or CEPSA. Here I started appreciating how technology is capable of transforming a big corporation with global presence. I always had an interest in working at a big technological corporation and that is why then I joined Microsoft. From there, you are able to see what technology can really do to improve people’s lives. This wasn’t only improving business processes, but implementing technology to level up the life of someone. It was an incredible professional period. After all of the gathered experience, I started working in ONEtoONE, where I’ve been working for over six years!

What is the one thing you enjoy more about your profession?

When you work in a company of corporate finance like ONEtoONE, where we mainly work with family businesses, you realize you are helping business owners that have spent all their life building a company and that in a specific moment they have to make the most important decision in his professional life after creating the company, which is selling it. Finding a new organization that can continue growing the company, finding all the possible synergies, that the selling price is adequate, that the teams work together… all of these are complicated for the business owner. Helping in the process and achieving success for our client is what truly makes me happy. Knowing years later that the objectives we worked for in the process have been reached brings me full satisfaction.

What has changed in your professional life after you joined ONEtoONE?

Working in ONEtoONE brings you much more professional freedom and both successes and failures are more directly linked to your own activity. Working in a multinational enables you to have a more global perspective and a strong backup to access the market and the clients. However, it is also true you end up diluted by strategic decisions you sometimes don’t agree with, but you still have to follow along. In ONEtoONE you are the one that decides the client you want to work with, in which sectors, with who you want to partner up and what teams you want to create. All these brings you much more freedom and at the same time more commitment with your decisions. Hence, you feel completely fulfilled both professionally and personally.

Can you tell us which has been your most successful operation?

It would be unfair to choose between all the operations I’ve closed in the past six years. I’ve helped small business owners to sell their business when they are about to retire, businessmen to integrate into multinational organizations so they can grow in this global world, startups to make the big move after their first years or search for the buyer able to give more for the company of an owner that wanted to focus on other activities. All of them have been a success for me and I am extremley satisfied with all of them regardless of the size of the operation. Helping business owners of the IT sectorclose corporate operations represents ultimate sucess for me personally.

Find out why Paul Hager, expert in M&A transactions enjoys working with ONEtoONE!

Attract more clients as an M&A advisor

If you are an independent M&A advisor or a small boutique this article is for you. Here we will reveal key aspects that you will need to fulfill when aiming to attract high quality clients in the fastest way possible while spending the least amount of resources.

Whoever stays with the best and bigger piece of the pie is because they knew where to find the best clients possible. Probably, this will be the common scenario for a big structured M&A firm, so how can you compete at this level with a lack of resources and time?

Access to information: The first struggle of an M&A advisor

The first step that you as an M&A advisor need to take to level-up and attract more clients is to get access to all the necessary information through professional data bases programs. This will allow you to find the right match between seller and buyer and close an important deal for your career.

The access to these programs may be a high expense for your business, making them unaffordable. If this is the case, you are already in a disadvantage regarding your competition.

However, let’s suppose you can work with a few of these programs, you will still need to know how to manage them and interpret all the data they provide. The interpretation of such amounts of information is no easy job, it’s something that should be delegated to a professional if you do not possess the “know-how”. Acquiring this knowledge is no easy task either, it will demand time and resources from you, which will slow you down.

Quantity equals success: Competing against the big firms

Let’s analyze this from another point of view. Big firms have manpower, making their client acquisition process stronger than yours. How can you overcome this disadvantage if you do not count with such manpower behind your operations? It does not matter how good you are at what you do, your talent will only get you to a certain point; in which you will need more hands on the field to compete against the big firms.

The cherry on top: It gets harder

Unluckily, the obstacles do not stop here. We must embrace that times have changed, and in today’s world every business needs to be present in the digital media. This is the most efficient way for clients to find you. So, you should ask yourself if you know your way through the digital era. Are you an expert in positioning yourself above the competition through digital marketing techniques? Do you have a strong digital presence?

Leaving digitalization aside. We also must consider all the paperwork, the time it consumes and how this can affect your deal closing and focus on getting new clients. Wondering if you should hire a legal advisor? You probably should, but this also adds up to the pile of expenses.

The best solution for an M&A advisor to attract more clients

ONEtoONE has developed an alternative for all independent advisors and small M&A boutiques out there. This solution will level you up so you can compete with the big firms for the best clients.

Basically, you will be working with a proven methodology while having access to the following:

Unique back-office support.
Financial data of more than 150 million companies.
Transaction data of industries.
Access to Private Equities and investors all over the world.
Access to Family offices.
Top and elite M&A tools.

The benefits of working with our team as an M&A advisor do not stop here. We invite you to know more about what working with ONEtoONE can do for your career. We provide support through all the process, from getting you the ideal client until closing the deal.

For starters, take a quick look at our main back-office services from which you could benefit from. If you wish to know more, please click in the button below.

Main Departments of our Back-Office

CLIENT ORIGINATION

MARKETING SUPPORT

COUNTERPARTY SEARCH

DEAL CLOSING SUPPORT

WORK WITH TOP M&A TOOLS

FULL LEGAL SUPPORT

I want to know more

If you want to continue improving, find out how to become a great advisor!

Principal barriers of selling a business

Which are the principal barriers of selling a business? Do you know how to deal with them? The matter at stake is a complex process that requires the assistance of a consultant service that provides trust, transparency, and confidentiality to the business owner.

These are the three principal barriers for selling a business:

Dealing with confidentiality.
Giving trust to the advisor figure.
Knowing how to find the best buyer.

Dealing with confidentiality

The desire of selling a business comes from a variety of reasons. For example, wanting to embrace a new adventure, feeling that you have “already done it all” or the tiredness of a long professional journey.

When protecting the confidentiality of selling a business we always have to understand the importance of leaving aside personal interests in communicating this decision, since these can affect business development.

It is of vital importance to know how to manage the following aspects of confidentiality when selling a business:

Confidentiality in the internal atmosphere of the business owner:

Many owners make the mistake of communicating this decision to their internal staff too soon and without the necessary cares. When this happens the probabilities of losing competitive strength increases, talented employees notice a lack of leadership and look for other professional exits and the snowball begins to grow to the point that a great business may fall apart.

Because of this, it is vital that the owner communicates this to the precise people in the correct moment. Also, a positive and good attitude should be maintained within the company, independently if the selling of the business will happen or not. This way, employees will be consistent with their good work and the rentability of the company will not be damaged.

Confidentiality in the external atmosphere of the business owner:

One of the greatest fears an owner has when thinking about selling his business is that they see their competitors as the only possible buyer of their company thanks to a lack of knowledge and information. Owners do not know about the techniques of how to manage confidentiality or strategies that allow them to find other buyers aside from their competitors. As a result, owners are paralyzed because of fear and they let pass what can be a good selling opportunity.

Lets take into account that the process of selling a business begins the moment the business owner first thinks about it. To avoid making these mistakes it is vital the support and guidance of a professional consultancy service that provides a high level of transparency and trust.

Confidentiality is just one of the principal barriers of selling a business. The owner also must know how to work with a team of advisors that are well qualified, have experience and can land a successful operation.

Giving trust to the advisor figure

There are many types of advisors out there who can be presented to the owner as facilitators, brokers, consultants, auditors etc. In most cases these so called “advisors” do not maintain an adjusted profile and that is the reason many operations do not succeed. This process requires and demands the advisor to manage techniques and knowledge that only professional M&A advisors know.

Therefore, when you think in advisors, you must seek for those whose professional nature is adjusted to what you are trying to do, in this case selling a business.

Either way, to avoid working with a pirate advisor or someone that doesn’t have the capabilities to carry out a corporate operation, listen to different financial advisors and then check out their success history in similar operations. Remember that correct guidance leads to a successful sale.

Therefore, it is important to let yourself be guided by the right advisors so you can also find the ideal buyer for your business.

Knowing how to find the best buyer for your business

The search for the best buyer and a good negotiation are key elements for a successful sell that reflects the hard work of the business owner. Not only should you find a solid offer, but also a buyer that transmits confidence and tranquility to the business owner.

This is why it is important not to make the mistake of selling the business to the first company or investor that makes an offer. The business owner should not make the decision without a previous in depth search and a good analysis of all the possible offers and opportunities.

In many occassions, finding the ideal buyer for a company can result in a long and exhausting process. For this reason, it is important to answer the following questions:

Which are the different types of buyers?
How to know if a company might be of interest for a buyer?
Which are the methods for finding ideal buyers?

We invite you to know more about this area in the following article.

Overcoming the principal barriers of selling a business

Thanks to the complexity of this process, the importance of what is at stake and the dynamics that a corporative operation demands, our recomendation is to continue this process by the hand of expert advisors with enough experience and history that can help you overcome these barriers. If you are interested in selling your business contact us and we will help you.

If you have any questions contact us.

Click on the next button and we will contact you in one to two business days.

After the sale

What comes after the sale? Most companies are born from a dream and when that dream is fulfilled another one is born. Therefore, after enjoying professional success and having conquered the business world, what will that new life focus be?

If we keep climbing the mountain that has already been conquered, then we fall in the hands of inertia and redundancy. That’s why the business owner needs to think about a new mountain to climb, one which is not build on success, but on sense.

It is normal that any professional that comes close to maturity feel the need to give back to the world what he has received. It is here when he understands that we only live once, and that true happiness is found in giving. This translates in leaving a legacy.

What does leaving a legacy after the sale means?

After the sale of a business we have to think about living for the wellbeing of others and not for ourselves. It consists of being thankful for the privileges you had and change the focus of your life objective. In this case, an objective that is defined by the number of lives impacted, instead of the size of the bank account.

When the business owner reaches economic success, he discovers that there are two sources of unhappiness in life:

Not getting what he wants
Getting what he wants

He undesrtands that it is not enough having a prosperous life, but it should be productive by generating good for others. He gets that he has lived for efficiency: doing things right; but he has not been effective: doing the right things.

When the answer to the next questions are not fulfilling, it is when the owner realizes that something must change:

With what amount of profit will I be happy?
Will I keep on moving forward with the same old objective and never reach and end? Or should I explore new opportunities?
Have I become a prisoner of my own success and business?

This is when the owner begins to dream with having more control over his life. He sees that he has the experience and tools to produce a positive impact that goes beyond his salary and dedicates himself to improve the life of others.

Here is when a new adventure begins, and the first step is to sell the business. The investment that will be done now will not be to generate more wealth, but to give to a bigger purpose. It is the beginning of a new dream, an opportunity to channel energy and resources towards a goal that supports others. With this in mind, the owners reach freedom to choose what he wants to do with his life, which results in an unimaginable level of happiness.

Clearly there is something more in life than just business. A lot of businessmen should ask themselves: What is my true purpose? What do I want to be remembered for?
Our success will be empty until we add meaning to it. It is about a change of heart, perspective, and priorities.
Have in mind that you are not what you want to be, but you are what you do. If you are unhappy, decide and act now, we only live once.

*Source of article www.expansion.com/blogs/quemada/2019/11/22/del-exito-al-sentido.html By: Enrique Quemada

*Music of video: https://www.bensound.com

If you have any questions do not hesitate in contacting us

click the button and we will contact you in the next one or two business days.

The selling process of a company

Many business owners reaching the end of their professional career should get familiar with the selling process of a company. Without a doubt, this is a complex process that has to be dealt with extreme care and attention in order to protect the main interest of the business owner: selling the company at a fair price.

Taking into account that all the phases of a corporate operation are highly important, in the following article we will analyze the most delicate points present during this process. This way, you will be more prepared for when you consider selling your business. These points are the following:

Know how to value your company to set a fair selling price
Find the ideal buyer for your company
Understand the due-diligence process
Understand the structure and functions of an SPA

How to value your company and why it is important

Maybe you never thought about how to value your company because you were not aware about the importance this factor has in the M&A world. Nevertheless, knowing the value of your company is vital for a successful sale.

A lot of business owners ignore the importance of making an in-depth valuation analysis, this is essential not only for a good sale but also so that we can apply improvements within the company and upgrade its performance. Generally, what we believe a company is worth differs with what it is really worth.

The valuation of a company is a technical analysis that requires a deep and fundamental financial know-how. The first step is to determine the characteristics and factors that provide value to your company so an educated guess can be made. If you want to know more click here.

To sum-up, knowing how to value your company is ideal for:

Preparing a good negotiation and being able to maximize the price of the company.
Finding a middle ground between the two parts as the views of the buyer and the seller tend to differ on the value of the company.
Understanding the position of the company in the market compared to competitors.

It is an important first step for starting a corporate operation in the right way. If you want to read more on the topic go to our article “How to value a company? The usefulness of the business valuation process”.

How to find the perfect buyer for your company?

It is important to know how to value your company, but also finding an ideal buyer for it. You need to find a solid offer as well as a buyer that will transmit confidence and tranquility to the business owner. And this is no easy task.

The search of the perfect buyer and a good negotiation are key elements for a successful sell that reflects the hard work of the business owner. That is why it is important, first, to avoid falling in the mistake of selling the company to the first counterpart that makes an offer, and secondly, to know how to identify a good alternative.

To be successful in this step of the process it is necessary to answer three questions:

Which are the different types of buyers?
How to know if a company might be of interest for a buyer?
What are the research methods for finding ideal buyers?

The question is: How? This general overview can help.

Types of buyers:

Knowing the profile of the businessperson or entity that is willing to buy your company is key. The 6 main types of buyers are the following:

Suppliers
Current clients
Foreign companies
Venture capital
Competitors
Companies from other sector

Analyze or identify what type of buyer is suitable for you is not easy, therefore it is important to know the different interests each buyer has and if your company matches them. Due to this, it is important you are aware of the following matters:

Knowing the trends in the sector and the participation of the buyer in it.
Knowing the distribution of the different business lines of the potential buyer.
Knowing the strengths, weaknesses, opportunities and threats of the potential buyer.

However, how can we answer these questions? We recommend you to apply the following tools:

SWOT Analysis, it will help you understand the strengths, weaknesses, opportunities and threats of the sector, your company and the company of the buyer.
Porter Five Forces, will help you know if the sector of your company seems attractive for a certain type of buyer.
Boston Boxes, they are useful to analyze the business portfolio equilibrium of a buyer and identify why your company could add something valuable to a specific buyer.

Nonetheless, this step does not end here. It is extremely important to know how to use the different methods that will make you able to identify the perfect offer and negotiate a benefitial transaction for both parts.

The next thing we will do is understand one of the most delicate concepts inside a corporate operation: the due diligence.

The due diligence

One of the main points during the selling process of a company is the due diligence. During this phase, the level of transparency and precission from the seller should be extremely high, as it is here where the buyer will be able to see in depth and full detail the company he is about to acquire.

It is a crucial step where all the process can collapse or keep on going. This is why it is of extreme relevance to know how to manage this step.

In other words, the due diligence is an analysis of everything that is under the tip of the iceberg of the company to be acquired. Due to its level of delicacy, we recommend you to manage it with extreme caution, and if possible with the support of a professional advisor.

You would think that after the test of the due diligence the process would be over, but there is still left one of the key parts of the process: the sale and purchase agreement (SPA).

The sale and purchase agreement (SPA)

Once the buyer determines the real value of the company that will be acquired and the due diligence is finished, it is time to decide the selling price and prepare the sale and purchase agreement (SPA) of the company. This requires of a lot of care and meticulousness.

One simple paragraph can make a successful operation become a failed one. With this in mind, the SPA is not something to take lightly due to its complexity. The most frequent question is: what is the content of the agreement?

Generally the agreement is made up of 5 sections:

Description of the transaction
Terms of the agreement
Representations and guarantees
Limited responsability
Conditions of the agreement

Each of these sections have a high level of importance and they should be perfectly executed to assure a successful operation. We invite you to know more about them in the following article.

How to sell a business: a real life example

Knowing how to sell a business can be complicated, that is why we want to clear all the doubts you may have regarding the selling process of a business so you can focus on taking the best decision for your future and the one of your company. We wanted to take the opportunity to tell you with full details the acquirement of SumaCRM by Efficy. You might be wondering what is unique about this operation, and the truth is the story behind it is really special, as from the blog of SumaCRM they retransmited weekly the whole selling process with real data and full detail.

To download the Case Study please fill out the following form:

The aeronautic industry in 2019

How much is an aeronautics company worth? Today, a lot. During this present year, we can see the aeronautic industry valuations reaching historical figures by looking into the numbers that corporate transactions show. This trend is expected to keep on going for the next few years in terms of M&A transactions within the sector.

According to our last report created by the ONEtoONE team, “The aeronautic industry in 2019”, the participation of certain countries plus a positive economic industry development, has made this sector attractive for M&A activity.

¿Which are the principal geopolitical players?

United States:

The aerospace industry in the USA is the principal character (Boeing), in what refers to innovation as well as the length of their product line, with a 47,7% of the global profit share.

Europe:

Its participation has increased in the last years thanks to the growth in the civil industry activity and thanks to an increase of the market share for the European giant Airbus, which is now the main competitor for the United States.

Other big competitors:

It is possible to identify other big players –such as Japan, Canada, Brazil or Russia– who, slightly minor contribution, have presented themselves in leader positions in some areas of the industry.

Challenges and trends of the european aeronautic industry

A new competitor:

The entrance of a new competitor that breaks with the duopoly since 1997 between Airbus and Boing. During the last decade, China – which soon will turn to be the biggest aviation market in the world- has been developing its own airplanes through the public enterprise COMAC, searching to penetrate the occidental market.

Supply Chain Consolidation:

Boeing’s supply chain is focused in big suppliers, while the Airbus supply chain encounters itself in a more incipient consolidation phase.

Less dependency on Airbus:

Another challenge that companies of the industry must face is to depend less on Airbus. Because of this, a lot of companies find themselves in the process of complementing their activity by participating in other areas such as the automotive, rail or nautical.

Corporate operations in the aeronautic industry in 2019

¿Which are the main objectives?

Search of leadership

Maintain leadership by increasing the presence in the European market by the creation of big multinationals (TIER l). This trend has become really important, specially in Spain where the level of corporative consolidation is minor than in other countries such as France and Germany.

Take advantageas of I+D of the acquired companies

Less heavy structures and planes with lesser Co2 emissions allows companies to position themselves as important characters in an industry in which technological advances play an important role.

Access to higher volume contract

Access to higher volume contracts. Thanks to major technical and productive capacities, groups that are working in consolidation processes have access to participate in mayor business activities.

Strengthening of financial position

With the entrance of new funds, the company can grow organically in a faster way

Download the full report “The aeronautic industry in 2019”

To find a complete and graphic view of the milestones of this trend and its global impact.

How to find the ideal buyer for a company

The selling process of a company is one of the most important moments in the life of a businessperson. Knowing how to find the ideal buyer for a company is a determinant factor for a successful sell. But, which is the best way to take the right decision on the matter?

Table of contents

Types of ideal buyers for a company
How to know if a buyer is interested in a company
Methods to find the best buyer for a company
Save alternative to find the ideal buyer for a company

In many occassions, finding the ideal buyer for a company can result in a long and exhausting process. For this reason, it is important to answer the following questions:

Which are the different types of buyers?
How to know if a company might be of interest for a buyer?
Which are the methods for finding ideal buyers?

Types of ideal buyers for a company

The first thing that should be taken into account is to know the different type of buyers and their diverse interests that might make a company a suitable match for them.

Suppliers: In the majority of cases, a supplier tends to acquire a company with the intention of performing a vertical integration that will give him access to a relevant client of the acquired company.

Clients: The interest of acquiring a company from the side of a client comes from the necessity of guaranteeing a secure supply, controlling at the same time the price of origin.

Foreign companies: Many foreign companies that are trying to enter new geographical markets want to acquire similar local companies to facilitate the process of entry and the cultural adaptation to the market.

Venture Capital: The main objective of a venture capital is to enter in high risk sectors of high growth and opportunities. It should be taken into account that over 30% of the acquirement of businesses count with the participation of a venture capital.

Competitors: The majority of acquisitions of this kind of buyers are part of a competitive strategy, being defensive against the participation of foreign companies with a bigger market share.

Companies from other sectors: A buyer from another sector might find apropiate to acquire a company that works with specific products and/or services that might complement the innovation and growth strategy of the acquiring company.

Knowing the different types of buyers allows us to know the kind of entity we shall take into account at the moment of selling the company. As a second step, we shall identify what elements make a company atractive for each type of buyer.

How to know if a buyer is interested in my company?

In order to know if a company could be of special interest to a buyer, we shall fully understand the following situations:

Knowing the trends inside the sector and the participation of the buyer in it.
Knowing the distribution of the different business lines of the potential buyer.
Knowing the strengths, weaknesses, opportunities and threats of the potential buyer.

But, how can we access this information? To do so there are different analytical tools that can be really useful.

SWOT:

Consists of the analysis of the strengths, weaknesses, opportunities and threats that need to be applied to the company, sector and potential buyer. This analysis will help us answer the following questions:

What value and strengths can the company add to the potential buyer in a certain sector?
What value and strengths can the buyer add to the company to create a competitive sinergy?

The final objective is to obtain an overview of the possible matches that can open the door to a strong sinergy between both companies where both opportunities and strengths can be taken advantage of.

Porter Five Forces:

Used to understand the most attractive sectors for a buyer. This method helps the businessperson to have a clearer picture of wether his business is in a favorable position to become part of a corporate operation or not.

The factors that determine if a sector is attractive or not are the following:

Companies inside a sector with high entry barriers usually present higher cost effectiveness. Therefore, this type of sectors tend to have great attractiveness for buyers.
Companies that operate inside sectors with high power of the client tend to have low cost effectiveness. Therefore, they try to acquire other companies to reverse this situation.
The high power of suppliers in a sector increases the cost effectiveness of their companies as well as the level of attractivenss of a possible buyer.
A sector with a low level of threat of having substitute products has a higher attractiveness to buyers.
A sector without aggressive competitors also presents high attractiveness to a potential buyer.

The Boston Boxes:

This matrix is used to analyze the equilibrium inside the company portfolio of a buying entity and to be able to find what are their necessities. Hence, it would be possible to know if a company has something valuable to add to a certain group which would then translate into a possible buying interest.

This matrix distinguish between 4 types of business groups that could be interested in acquiring a company for various reasons:

Cash Cows: Mature companies that are looking to acquire companies to maintain their position.
Stars: Companies in the search for other companies to sustain their high levels of growth.
Dogs: Companies with low growth rates that will probably be sold.
Question Marks: Businesses that are not looking to acquire other companies due to the level of inestability they are going through.

Until now we have been talking about the importance of knowing the type of entities that usually are interested in buying a company. We have also seen how the dynamics of a sector influence the level of attractiveness of a company for a buying entity.

Finally, through different tools, it has been made clear the different methods by which a business owner who whises to sell his company can know the current situtation of his sector and hence have a better picture of what type of buyer to focus on.

The next step to know how to find the ideal buyer for a company is to analyze the main negotiation sinergies that will allow to identify the best offer so that the selling operation can be a success.

Methods to find the best buyer for a company

First, it should be understood for who and why a company can be of interest for a buyer. Once this concepts are addressed, it is time to get to know the best buyers and their motivations for buying the company.

There are 12 concepts that can help you identify companies that can be looking to acquire a company.

Sinergies: When a buyer wants to consolidate its strengths through the acquisition of a company so that the merger will be more benefitial than the individuality of both organizations.

Diversifications: Buying to diversify has the objective of acquiring companies outside the main business line of the buyer. This is made to enter growing markets with high potential.

Access to relevant clients: Some buyers acquire companies that will help them reach an specific client they were not able to reach before.

Strategic Realingment: Many times sectors change and the companies in them try to adapt through acquisitions.

Fiscal Reasons: Some buyers search for companies with high level of accumulated fiscal credit. The purchase of this kind of companies can avoid some tax payments due to benefits during a specific period for the buyer.

Overvaluation of the buyer´s stock market: Some overvalued companies are of high interest to the buyer because this allows the exchange between overvalued shares for shares with a normal value.

Cómo encontrar el comprador ideal para una empresa

Technological Change: Technology changes different competitive factors and makes acquisitions a very favorable option for companies to adapt to new disruptive tendencies.

Regulatory Change: When governmental regulations change, the game also changes. In these cases a quick solution can be the acquisition of a company.

Competitor Pride: Increasing presence, size and remuneration is between the main objectives of directors of big enterprises. Therefore, an acquisition strategy can be very attractive.

Purchase of undervalued assets: There are some sectors that are in a downward cycle which makes the companies in it lose value. This is why it is important to keep an eye on the tendencies of the sector, as it can be a clear sign that selling your business is the best option before the company looses its value.

Purchase of unique resources and capabilities: A company can present high levels of attractiveness for a buyer thanks to its resources and capabilities that the buyer misses.

Gain power in the market: For a buyer, increasing their market share will always be of great interest for strengthening their competitive advantage.

A secure alternative for finding the ideal buyer for a company

As Enrique Quemada, President of ONEtoONE, says “in the selling of a company every experience is different and unique”. This is why knowing how to find the ideal buyer for a company is of great importance. Not only do you need to know the steps and the theory that make an operation successful, but also it is essential to be well advised during this part of the process.

If you still have doubdts on how to find the ideal buyer for your company and how to manage a good negotiation, in ONEtoONE we put at your disposal a full team of professionals that will be fully dedicated, with transparency and confidentiality, to support you during the whole selling process. Do not hesitate to contact our team of advisors.

“In the selling of companies each experience is different and unique. Buyer and seller are unique and their necessities and interests in that moment are unrepeteable”. (Enrique Quemada)

Contact with our team of advisors

ONEtoONE counts with an extensive team of professionals and experts in advising on the selling of companies.