It is not unusual that the sale of a company is initiated when the owner is approached by a potential buyer that takes active contact in the hope of being able to acquire the company. The buyer might not know whether the company is for sale or not, but it is in any case clear that the buyer has identified the company as a suitable acquisition candidate.
As seller, you should in this case keep in mind that the buyer will do everything to acquire the company at the lowest possible price. If you as a seller are interested in getting a maximum price for your company, you should be aware of the risks in only talking to one buyer. This includes longer leadtime, the buyer offering a price that is way below the maximum level and the buyer trying to haggle at the end of the deal. It happens quite often that these types of deals are never concluded successfully.
In addition, when a buyer makes contact and wants to acquire a company, it is usually the buyer that ends up controlling the deal. This often results in the seller not always getting what the company is worth.
When you have been approached by a potential buyer, we at Skarpa always recommend that you make contact with a professional advisor.
Are you interested in knowing what you should think about when approached by a potential buyer? Feel free to contact us on +46 8 669 86 62. Skarpa also organizes seminars on the subject of selling companies, click here for more information about our seminars.
