Sale of companies or business divisions
Sales operations are different from other types of business. Achieving desired goals and results requires specialized knowledge and experience.
Deloitte assists in defining a strategy and coordinating the different phases of the sales process, such as estimating the potential value of a company, identifying risks, contingencies and planning corrective actions, selection of potential investors, presentation of the company and creation of a competitive sales process.
By means of a combination of industry expertise, local market knowledge, and an extensive global network, Deloitte finds buyers that can present the best offers and complete the transaction in the shortest possible time.
In some situations, sale of a minority share to a financial investor is an alternative to capitalize the company without the need to give up control and management, in addition to making it possible for partners or heirs who do not want to remain in the company, to leave.
- Understanding of company operations, strategy, financial situation and perspectives;
- Analysis of the economic value range based on cash flow generation and market multiples to guide discussions with shareholders and their expectations;
- Provision of vendor assistance – auditing procedures in the accounting, finance, tax, labor and environmental areas that help the company prepare for investor questions on possible contingencies and even assess the need to postpone the sale process until some corrective measures are taken, thus avoiding a reduction in the sale price of the company;
- Preparation of an informative memorandum with the main operational and financial information on the company, its future plans and added value for each potential investor.
Steps for preparing a company for sale
- Signature of confidentiality agreements and delivery of an informative memorandum to selected investors to allow evaluation of the opportunity and presentation of the preliminary investment offer;
- Interaction with potential investors in order to remove doubts, answer questions and respond to requests for additional information;
- Negotiation of the preliminary terms and conditions presented by potential investors;
- Presentation of offers to shareholders and selection of investors to continue in the process;
- Assistance to shareholders and their legal advisors in reviewing and preparing the Letter of Intent;
- Support for shareholders in discussing the results of legal, tax, financial, labor, environmental and accounting due diligence on the company;
- Negotiation of final transaction terms, including financial and legal aspects that should be reflected in the contracts;
- Assistance to shareholders and their legal advisors during the transaction instrumentation, formalization and settlement process.