Questions and answers

The sales process begins with an initial consultation where we discuss your goals and value your business. Then, we develop a tailored sales strategy and market your business to potential buyers. We handle negotiations and ensure all legal and financial aspects are managed correctly. The process concludes with the completion of the sale, where we ensure a smooth transition for both you and the buyer.

If you want to sell your business, start by contacting us at Merge for an initial and entirely non-binding consultation. We will discuss your specific needs and goals, conduct a valuation of your business, and design a sales strategy tailored to your situation. Our team will support you throughout the entire sales process, from marketing to potential buyers, negotiations, and closing the deal, to ensure a successful and profitable sale.

Preparation should include organising and documenting all financial and legal aspects of the business, optimising operations to demonstrate strong profitability, and preparing a clear business plan and future strategy. It can also be beneficial to conduct an internal due diligence to identify and address potential problem areas. We are happy to help you discuss what you need to prepare!

The timeframe for an M&A transaction can vary significantly depending on many factors, including the size of the company, the legal complexity of the transaction, and how well the parties can agree on the terms. Generally, the process can take anywhere from a few months to over a year. A typical Merge client usually requires 4-6 months from start to finish, but we naturally adapt to your preferences and the company’s circumstances.

The right time to sell depends on both external market conditions and internal company factors. Optimal times can be when market conditions are favourable, when the company has strong financial performance, or when there are strategic buyers willing to pay a premium. We are happy to discuss this with you without any obligation, no matter if a sale is imminent or several years away.

The difference between an M&A advisor like Merge and a business broker primarily lies in the scope of expertise and the types of transactions they handle. An M&A advisor typically has deep industry knowledge and specialises in managing larger and more complex transactions. They work closely with their clients throughout the entire process, from strategic planning to the completion of the deal, offering tailored solutions based on comprehensive analyses and market insights. Business brokers, on the other hand, often handle smaller business transactions using a “Craigslist ad” approach and may have a less specialised knowledge base.

Business valuation is the process of determining the economic value of a company, which is crucial when selling or buying a business. An accurate valuation helps ensure that the seller has a clear understanding of what the company is worth, facilitating a fair transaction. Proper valuation requires a deep understanding of both the industry and the unique financial conditions surrounding each specific business, as well as other aspects that buyers and investors value.

Due diligence is a thorough examination of the target company conducted by the buyer. It involves a detailed review of the company’s finances, legal issues, market position, and various other aspects. The purpose is to proactively identify and address potential risks and issues to ensure a smooth and successful transaction.

The due diligence process often includes financial review, legal review, operational review, tax review, tech review, and market review. The goal is to identify and understand all aspects of the company to assess risks and opportunities before a transaction. Merge guides you through the entire process.

Choosing the right investor is not just about finding someone willing to buy at the highest price. It is also crucial to find a partner whose strategic goals, resources, and expertise complement the company’s needs and future vision. A good match can contribute to long-term success and growth. At Merge, we conduct a structured process that allows you to evaluate potential investors and buyers to find the best partner.

A strategic buyer is often a company within the same industry that wants to acquire another company to expand its operations, gain access to new markets, or complement its product portfolio. A financial buyer, such as a private equity firm, is primarily interested in the investment opportunity and generating a return by being part of the company’s continued success journey.

A partnership deal involves a financial investor acquiring a stake in an entrepreneur-led company to jointly develop and enhance the business. The goal for the entrepreneur is often to realise some of the accrued value in the company while bringing in a value-creating partner who can contribute with resources, expertise, and networks.

An earn-out is a contractual clause in a business sale where the seller receives part of the purchase price based on the future performance of the company. This can create incentives for the seller to continue working towards the company’s success during a transition period after the sale.

The biggest risks include not finding the right buyer, not achieving the desired valuation of the company, the due diligence process identifying unexpected problems, or the negotiations dragging on too long, causing the sale to fail. Merge has established strategies and experience to minimise the risk of a failed process.

Company culture can play a significant role in how smoothly an integration proceeds after a transaction. If the company cultures are very different, it can create conflicts and inefficiencies. Therefore, it is important to evaluate and plan for cultural integration early in the process.

A Letter of Intent (LOI) is a non-binding document that expresses the buyer’s intention to acquire the company and outlines the basic terms of the transaction. It serves as a foundation for further negotiations and due diligence. Often, an LOI includes an exclusivity clause, meaning the seller agrees not to negotiate with other potential buyers while the deal is being finalised.

Confidentiality is managed by having all parties sign Non-Disclosure Agreements (NDAs) and sharing information in a controlled manner. Only necessary information should be shared at each stage and with the appropriate individuals.

To ensure that employees remain with the organisation after a sale, you can offer incentives such as retention bonuses, stock options, or other benefits. Clear communication and involving key personnel in the transaction process to minimise uncertainty are also crucial. Merge has established approaches to effectively structure a transaction.

A carve-out involves selling a part of a company, often as a separate entity. This is used when a specific part of the business no longer fits within the company’s core strategy or to generate capital.

Synergies refer to the benefits and cost savings expected to arise when two companies combine. This can include increased revenues through cross-selling, reduced costs by eliminating duplicated functions, and improved efficiency.

Buy and build is a strategy where an investor acquires a platform company and then purchases smaller companies within the same industry to integrate them. The goal is to create a larger company that can benefit from synergies, economies of scale, and an improved market position. The strategy aims to quickly increase the company’s value through inorganic growth and the streamlining of the acquired businesses.

If you have more questions or concerns about M&A and business transactions, do not hesitate to contact us at Merge. We are available to provide more information and evaluate the opportunities available to you without any obligation. Our team of experts is ready to offer the advice and insights you need to ensure a successful and rewarding transaction.

Clear, up-to-date and accurate accounting, combined with well-structured operational data, is critical in a transaction. Investors want to understand what they are buying, this includes details about the business model, margins, cash flows and operational KPIs. If the data is messy or incomplete, trust drops, and in the worst case, so does interest. At Merge, we make sure order is established quickly and help companies prepare for a sale, both in terms of financial reporting and operational data. We ensure that the information is presented in a way investors understand, trust and are used to working with, which directly improves the chances of a high valuation and smooth process.

That often drives not just a higher valuation but also better terms. A competitive process forces investors to show their true level of interest, not just through price, but also through terms, speed and the proposed future structure. A structured process with broad investor engagement creates pressure in the bidding, which we at Merge use to maximise value and outcomes for our clients.