According to various studies, it averages 6 to 9 months to actually be speaking with a competent, interested buyer prospect and another 6 to 9 months to have the transaction close, so most professionals would answer it takes, on average, 12 to 18 months. It certainly can happen more quickly, but that is not the norm. It can also take much longer or not happen at all, depending on such factors as:
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Vendor’s commitment to the sale
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Asking price
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How you present the company
Copernicus acts on a regular basis for clients in North America, Europe, Asia, India and the Middle East to identify and approach potential acquisition targets. We could have a ready-made buyer waiting for you!
A diligent buyer, once they have decided whether they have a serious interest in your business, will seek to verify and confirm every phase of your company through a thorough examination known in the industry as due diligence. This may include a review of your marketing and operations — product lines and services mix, management structure, customer and market base, and compatibility of operations.
Purchasers will assess your financial condition including financial statements, tax returns, depreciation schedules and payroll records. They will want to see your company’s earnings (profit before taxes) for the past three to five years, if available.
Buyers will review the assets of your company – facilities, equipment/vehicles, inventories and leasehold improvements.
They will want to know about employment contracts. If necessary for the company, also about your patents, licenses, permits and franchise agreements.
Having professional help in preparing for the sale of the company is so important in dramatically increasing the likelihood of coming through the due diligence process with the sale still intact and getting the most value the market will support.
Call us today: +44 161 262 1990
Company Valuation
Warren Buffet is widely regarded as one of the most successful investors in the world… he is often quoted as saying
“if a seller doesn’t know the value of their company, it is both legal and ethical to steal it for less”.
Clearly, a professional, independent valuation is essential to know the truth of a company’ value, and for more reasons than just its pending sale.
A company valuation is important for many reasons; the most common is to determine the Fair Market Value of a company.
If a company is priced too high, it will not attract any buyer interest and is highly unlikely to sell at all. If a company is priced too low, it may well attract considerable interest and offers, but the owner may leave hundreds, thousands and sometimes millions of pounds on the table.
According to a recent study, 4 out of 5 companies that actually sell do, in fact, leave 30% to 70% of their value on the table.
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