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Many business owners equate preparation with time, believing that the company first needs to be “polished up” over many months or even years. However, that is not what really matters.

What is essential is that, when the business goes to market, there is a solid foundation of reliable information: complete documentation, credible financial data, a transparent presentation of the business, and an offering that meets market expectations.

In the SME market, investors do not buy stories – they buy proven business models, sustainable earnings and future growth potential. A compelling presentation is important, but it can never replace facts. A company’s unique strengths must be presented professionally without losing sight of its commercial reality.

The best results are achieved when the true market value of a business is recognised and the sales strategy is built consistently around that value. Only then is it possible to target the right buyers and establish a structured and effective sales process.

Whether a transaction succeeds also depends on who guides you through the process. Those who rely solely on instinct or choose an adviser whose main objective is to confirm unrealistic expectations often have little chance of completing a successful deal.

My 30 years of M&A experience have shown one thing very clearly: the market works. Those who understand the market and prepare their business professionally create the foundation for a successful sale.

A word of caution: Entering the market with unrealistic price expectations – or allowing yourself to be convinced that such expectations are justified – often prolongs the process considerably. Potential buyers lose interest, negotiations stall, and eventually the impression is created that “there is no market”. In reality, it is often simply a case of the offering not matching market demand.
A Practical Rule of Thumb

Today, countless free online business valuation calculators are available. Their primary purpose is not to provide genuine expertise or valuable analysis free of charge, but to generate leads. They are offered by advisers, online platforms and investors alike – each with their own commercial objectives.

Tip: The higher the valuation generated by a five-minute online calculator, the greater the likelihood that you are dealing with the wrong adviser… ???? Average valuations are of little help either. Only a thorough, detailed analysis provides genuine clarity.

The Most Common Weaknesses in Preparing a Business for Sale
Besides the wrong mindset, the most common misconceptions concern:
• The M&A market itself
• The significance of different buyer types
• Online business valuation calculators
• The negotiation process
• The interpretation of financial figures
• The assessment of special circumstances (family members involved in the business, commercial relationships, etc.)
• The position of products within their life cycle
• The time required to complete a transaction
• Incomplete documentation

Overall, one principle applies: the better prepared a business is—and the more realistic that preparation—the greater the likelihood of achieving a successful transaction within a reasonable timeframe and securing an attractive purchase price.

Our experience shows that professional preparation, combined with a clear analysis of the points above, makes the decisive difference.

This includes, among other things:
• Assessing the company’s readiness for sale
• Identifying strengths and critical issues
• Optimizing corporate documentation
• Developing a persuasive investment and sales proposition
• Providing structured support throughout the entire sales process

That is why we firmly believe:
Business sales fail because of the wrong mindset and inadequate preparation – not with us.

When should preparation begin?
Ideally, preparations should start 9 to 18 months before the intended sale, although the optimal timing depends on the specific circumstances of the business.

Questions?
Feel free to contact me for a confidential, no-obligation discussion. We also offer individual coaching.

Rolf Popp
Graduate Industrial Engineer (FH)
M&A Adviser

0049.152.28947574