Many Romanian business men and women have mixed feeling when it comes to selling their company. On one hand, they can hardly wait to start a new project, tackle a new challenge or just have a break for a while, and, on the other hand, they feel sorry for having to distant from their achievement, reached with efforts, sacrifice and hope.
In Romania, most of the small and medium company founders postpone the decision to sell their business because they lack time, resources or, simply, they don’t know anything about exit options.
Therefore, the role of the expert in selling companies becomes more and more important, although people know very little about it.
The expert in company sales has the ability to elaborate a business overall perspective: besides numbers, there is analysis of the potential business growth, market positioning and the real interest that can generate. We could say that we are talking about a partner of the seller, but, it’s much more, given that the expert has the capacity to envisage also the buyer’s perspective.
One of the most important capacities of the expert is assessing the business as realistic as possible. Romanian business men and women tend to be very possessive and subjective when it comes to their company: they overvalue it, which is normal, taking into account their involvement.
Therefore, the objectivity of the expert is necessary and is present in the financial data analysis, in business comparison to similar ones and in the clear view over the market. It is not enough to talk about how much income has the company made over the last years. Clearly, it is necessary to see its structure, its processes, how much it relies on its founder, the cohesion of the team and if there are solid agreements or loyal clients.
Moreover, confidentiality is essential. Generally, company owners don’t want other competitors, employees or providers learn about the selling process. The expert in business sales know how to handle the situation and carry out procedures without making sensible data known, unless there has been a strict selection of potential buyers who have signed confidentiality agreements. This is an important step because it represents a filter: it keeps professional curious at a distance and preserve the serious investors who understand and have the capacity to finish the transaction.
When suitable buyer is identified, the broker becomes mediator. It is not easy to bring together two parties who have different views and objectives. Many times, the seller is emotionally involved while the buyer has a cold eye for risks and financial projections. The role of the expert is to make the connection between them by translating, calming down, explaining and negotiating; not only for deal closure but also for building a sustainable transaction for both parties.
There are cases, not rare, where the business owner has no idea about the market value of the company he/she wants to sell. Or, there are times, when he/she is not aware about the need to structure, to separate some assets, or to clarify judicial aspects before selling, so the business becomes more attractive to a buyer. The expert can help the process, patiently guide and plan the steps for the company be ready for transaction, sometimes, one year earlier than listing date.
To sum up, selling of a company can be seen as a journey. It’s cannot be done the next day and is not only about money. It’s about continuity, closure of a life stage and beginning of another. The expert in business sales has the expertise to help you go through all these with clarity, trust and satisfactory results, according to your work. Romanian business environment is very dynamic and the role of such expert is no longer a luxurious type of services, but a useful tool for everyone who needs to correctly value his/her business built out of passion.