Mergers & AcquisitionsFrom opportunity to deal
Articles

What to know before you begin

Six short pieces from our own experience: on decisions, on timing, on discretion, and on the people behind every deal.

1. You do not have to decide to sell in order to start looking

One mistake owners make is to think there are only two options: "I am selling" or "I am not selling".

In reality there is a great deal in between:

  • You can test the market.
  • You can find out who a buyer might be.
  • You can look at bringing in a partner.
  • You can sell part of the company.
  • You can prepare a year or two ahead.

And sometimes, after looking, the right conclusion is not to sell at all right now.

A good deal starts with a good decision, not with pressure.

2. Who is the right buyer?

The buyer willing to pay the most is not always the best buyer.

A strategic buyer can see something in a company that others do not: customers they want to reach, a complementary product, skilled staff, a licence, a distribution network, equipment, a location, knowledge, or fast entry into a new market.

So when you are considering a sale, the question is not only "Who wants to buy?"

The more important question is: "To whom is this company worth the most?"

That is where the real search begins.

3. Why does discretion matter so much?

Announcing an intention to sell too early can raise questions among employees, customers, suppliers and competitors.

In a significant deal you do not have to start by advertising. You can start by mapping:

  • Define who the relevant buyers are.
  • Approach them directly.
  • And only when there is an initial fit, move on to sharing more information.

Less noise. More precision.

4. Not every company for sale is advertised for sale

Many buyers search listings and websites. That is a good place to start, but a good company is not necessarily there.

Some owners will consider selling only if the right person comes to them. Some companies never thought about selling at all, until an interesting strategic offer arrived.

So a large part of acquisition work is not only reviewing what is on offer, but defining what you want to buy, and then going out to find it.

5. Selling a company is not like selling a product

When someone sells a company they built over ten, twenty or thirty years, they are not only selling the numbers in a report. They are selling something that was a large part of their life.

Often it carries the family name. Employees who have been with them for years. Customers who became friends.

A deal like that needs professional skill and an understanding of the human side.

Deals are signed between companies. But they are made between people.

6. We are looking for good companies

We are expanding our register of opportunities and would like to meet owners who are quietly considering one of the following:

  • Selling the company.
  • Selling part of their holding.
  • Bringing in a partner.
  • Joining a larger company.
  • Or planning a future exit from the business.

We focus on active companies and businesses with an estimated value of NIS 10 million and above.

The conversation commits you to nothing and is never made public. Often it simply helps you see what your options are.

Start a confidential conversation 050-822-4522

From opportunity to deal

If you own a business and are weighing your next step, even if selling is only a first thought, you are welcome to talk to us. And if you are looking for a company to buy, tell us what you are looking for.