Typically, the Entrepreneur exits his/her investment through a disposal to another investor. The key factor here is proper determination of the company’s and industry’s life cycle moment. It determines the next step, i.e. selection of an appropriate investor type (venture capitalist, industrial player, company’s management, key customer, etc.). This phase impacts both the possibility of achieving attractive financial conditions, and the way the company should be prepared for sale.
Acropolis Advisory team possesses significant experience in transaction processes, both domestic and cross-border. Key advantages brought in by an experienced advisor are:
- long-term, structured preparation of the company for sale, taking into account the characteristics of the future investor,
- professional transaction management with the use of available tools, such as multi-step bidding process, confidentiality agreement, auction process, exclusivity period, etc.
- assurance of compliance (together with legal advisors) with formal requirements (consents and notifications).
Entrepreneur – shareholder in a company owning exclusive distribution rights with respect to a reputable European car parts producer – has been offered by this producer to enter into negotiations concerning disposal of his business. Because of the large disproportion of sizes, market position and transactional experience, the Entrepreneur was concerned about attractiveness of conditions, which he would be able to agree. He asked an advisor to evaluate the received acquisition proposal and manage the transaction in a way to improve the conditions to the possible extent.
In order to benefit from the biggest asset of the Polish company, i.e. firm relations with its customers, the advisor suggested to ask for parallel offers from other international players, which could potentially be interested in entering the Polish market. This move drastically increased the competitiveness of the process, and – as a result – improved the negotiating position of the Entrepreneur vis a vis his partner. Execution of attractive transaction terms was then easily achievable.