Corporate transactions are experiencing a very intense moment of activity due to several strategic and financial factors:
Strategic:
Financial:
Despite the uncertainty in the market, corporate transactions are once again part of the growth and diversification strategy of large companies and financial investors seeking profitability.
The pandemic, and especially its aftereffects, are making company owners reflect on whether to continue to own and manage their companies and how to tackle future challenges with assurance and energy.
This internal reflection involves both economic and emotional aspects.
From the emotional viewpoint, it is not uncommon to consider selling a company as the last resort rather than a good option.
In family companies, the emotional part is characterised by a stronger attachment and the decision to sell can be seen as breaking away from the family or a betrayal of the wishes or intentions of the founder.
However, the economic reality and survival of businesses do not depend on feelings, but on having clear goals and the capability, energy and resources required to achieve them.
The pandemic has revealed weaknesses such as:
Another consequence of the pandemic and the uncertainty we are experiencing is burnout among businesspeople, which is the opposite of the great demands and motivation required to deal with the new challenges. This situation will most likely affect the competitiveness of the companies and their ability to adapt to the new, more globalised and changing environment.
What should they do in these circumstances?
When circumstances such as these arise (burnout, lack of motivation, lack of resources to face new challenges, etc.), selling the company is the right decision.
Another essential aspect of the decision to sell is identifying the right moment to do this.
In our experience, the right moment is when the company still retains its value and is not yet in decline.
The decision to sell is often made when the company is going through a hard time and at this point its value will have fallen.
The decision to sell a company must be properly thought out and planned, as the successful conclusion of the process and receiving the highest possible value hinges on this. The importance of the decision goes beyond the owners and also affects the employees, customers, suppliers, etc. It therefore cannot be made on the spur of the moment.
Being aware of one’s own limitations and deciding to transfer the asset to a third party is an act of realism and honesty.
That is why the decision to sell the company that you have created must not be seen as failure, but as a good alternative to make sure that the company lives on and grows, creating employment and wealth through the work of the new owners. This is a reason for personal pride and is a sign of corporate success.