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Advisory services

Selling a company is often a significant career change in the life of an entrepreneur. In addition, it is often a transaction that is carried out by the by the entrepreneur rarely or just once.

In the case of the sale of companies of a smaller size, the site gives the seller the opportunity to control the process itself, including to hand over the posting and management of the advertisement to its accountant or lawyer.

However, if you require the assistance of professionals in Hungary experienced in business transfers in any aspect or in the whole of the process, the site gives you the opportunity to use it in the required scope.

What is the process of selling a company?

In the overview chart below, we have summarized the usual process of selling a company in five stages.

adequit.com Company sale process

Of course, there is flexibility in the above steps, for example, the smaller the company for sale, the greater the chance that the buyer will not give a written letter of intent or will want to review the operation of the company in details before making a purchase offer (changing the order of letter of intent and due diligence). At the same time, the larger the company for sale, and therefore the more formalized the procedure, the more likely it is that the above steps will follow each other.

You can read more about the process of selling a company in our post Successful company sale in 20 steps  (in Hungarian).

What is the process of buying a company?

The process of buying a company is very similar to the process of the sale of a company, but approaching it from the point of view of the person buying the company.

adequit.com Company purchase process

What is the role of the transactional advice?

The Standard+, Private and Closed listing types include that we assist the seller through the process of selling the company with transactional advice (consulting service for the sale of a company).

The content of the transactional advice is adapted to the size of the business for sale and the complexity of the sale. In general, transactional advice on the seller's side includes, or may include, the following:

  • preparing the enterprise for the sale on the basis of a separate agreement
  • preparation of the information materials about the company for sale (including the text of the advertisement)
  • company valuation to determine the ideal selling price
  • finding prospective buyers and presenting the business for sale
  • communication on behalf of the client with interested parties, and potential buyers
  • advising the client on when to do what step that is due in the process of selling a company and what to pay attention to during the sale process
  • in a limited scope, preparation of the data room and preparation of certain documents
  • review of the structure and terms of the sale from a commercial point of view
  • as a project manager, keeping track of what needs to be done, as well as coordinating the participants on the seller and buyer side and their tasks.

As a transaction advisor, we always represent only one side, i.e. in a given transaction we act either on the seller side or on the buyer side.

Cooperating experts

In order to be able to sell your company that has been built with a lot of effort, it is necessary to be able to access an advertising platform, but it is not enough.

The main purpose of the site is to provide a platform for publishing advertisements and thus to create opportunities for contact between advertisers and potential buyers so that company sales can take place, assisted by – with the exception of the Standard listing type – advisory services provided by the site.

As an additional service, the site allows you to use the services of experts who work with us, so you can find the consultants in one place, integrated with the basic service.

Areas of experts

In addition to the value of the transaction, there are a number of aspects that influence what experts are required to participate in the process of buying and selling a company and at what stage of the process.

In general, in transactions of higher value, it is customary to involve experts providing at least the following services, even if the extent of their involvement may be different:

  • Transactional advice 
  • Company valuation
  • Legal service
  • Tax and accounting service.

If the value of the transaction does not justify the full participation of all experts on both sides, the usual procedure is to narrow the scope of activity of the expert corresponding to the needs of the transaction.

Preparation for the sale of a company

There are times when you suddenly have to think about selling a company: for example, because of a family or health reason, starting another business, or because of an unexpectedly received purchase offer.

The question is not only what price and other terms can be achieved during the sale, but also whether the sale will be realized at all, whether it will be possible to find a suitable buyer. For this purpose, it is advisable that both the company and its owner arrive at the company sale situation with proper preparations.

In addition, legal restructuring prior to the sale may be necessary, such as the separation of remaining and selling activities and customers, the simplification of the ownership and subsidiary structure, the optimization of tax liability, and, in the absence of a shareholders’agreement, an agreement with the minority shareholders on the joint sale.

Experience has shown that a preparation for the sale can greatly influence not only the selling price that can be achieved during the sale of the company (including raising the multipliers used in the calculation of the price), but it also increases the chances itself of a successful company sale.

In addition, the effectiveness of the sale can be decisively influenced by an active search for potential buyers, where it is crucial that the strengths of the business that are relevant to the buyer are properly presented. This also requires that the transaction advisor has sufficient quantity and quality of information, the ideal source of which is preparation for the sale of the company.

The effort expended in advance by both the owner, management and consultants can pay off in abundance in the success of the subsequent sale.

Pre-advertising consultation

We are also happy to be contacted you if you are already thinking of selling your company, but you would like to find out more about the preparation for the sale of the company and the process of the sale before a final decision is made.

Transactional advice without advertising

The transfer of company ownership basically takes the following forms:

  • Selling to third parties, be it strategic or financial investors
  • Corporate succession within family or relatives
  • Buyout by management
  • Buyout of a minority owner.

While our advertising services help you to sell the business to third parties, our consulting services are also available in all of the above cases.

Do you have a question? Contact us