Selling your business is always a decision made after careful consideration, often influenced by external opinions that may not fully understand the true dynamics of the transition.

Contrary to the stereotype of selling as a last resort before failure, initiating an M&A transaction is often a strategic step for entrepreneurs aiming to grow and evolve their business.

Selling a business can mean:

• Incorporating it into a larger and more established organization;
• Protecting jobs;
• Creating a new management team to further develop skills and optimize processes.

When is selling a business the right choice, and how can you ensure it’s done at the optimal time?

Selling a business when profits are declining and the core business is in crisis is not the best decision. In today’s fluid and dynamic market, exiting during a rapid downturn can severely compromise the expected outcomes.

The optimal time to sell a business is when you can obtain the highest possible price.

Pinpointing this moment can be difficult, but it generally occurs when the business reaches its maximum market value. Identifying this “peak” is crucial to prevent entering a decline phase, losing revenue and competitiveness.

How to calculate the value of a business?

The value of a business depends on a series of factors, including:

• The consistency of cash flows;
• The historical trend of financial and operational performance;
• The condition of assets;
• The competition;

Beyond these fixed and analytical points, another dimension that is very attractive to potential buyers: evaluating the business’s potential for growth and development.

The report used to present a comprehensive overview of a business to potential buyers or investors (Information Memorandum) is designed to create a narrative that highlights both the business’s tangible resources and its untapped potential.

Maximizing returns: why you should engage professionals?

Entrepreneurs who decide to sell their business employ various strategies: some start with the idea of managing the process independently, others seek help from professionals for specific aspects (such as accounting or legal), and some rely on simple word of mouth.

These DIY solutions often involve high costs and wasted time in negotiations with unreliable or financially unstable buyers.

The real risk, however, is engaging in risky and unclear negotiations that might result in a disadvantageous acquisition

To maximize the sale value of the business and avoid undesirable consequences, it is advisable to engage M&A professionals who can manage the sale securely, guiding the business from the initial stages through to post-merger integration.

At Winnerge, we focus on tailoring business valuations, finding the ideal buyer for your goals, and providing expert support throughout the entire process.