Financial statements and EBITDA do not always explain how an SME actually generates its results. During a sale process, a buyer may want to analyse margins by customer, product, channel or market. Preparing this information in advance helps the company enter negotiations with clearer, more consistent and verifiable data.
A letter of intent can define the price, transaction structure, exclusivity, conditions and the business owner's role after the sale. Understanding what you are agreeing to before signing is essential to protect your alternatives and maintain control of the negotiation.
If production continuity, know-how and key decisions depend on one production manager, a valuable employee can become a significant risk during the sale of an SME.
Supplier dependence arises when an SME cannot ensure operational continuity, margins or delivery times without relying on a small number of key suppliers.
When an entrepreneur thinks about the value of their company, the focus almost always goes to revenue, margins, EBITDA and growth prospects. Much less often, the starting point is an apparently operational question: how much capital is tied up in inventory?
When an entrepreneur decides to sell their company, the due diligence of an SME is often perceived as a technical, almost notarial phase, required to reach closing without issues.
One of the most common questions entrepreneurs ask when they start considering a sale is simple: how long does it take to sell a company?
Many small and mid-sized companies, even those with solid foundations, struggle to attract qualified buyers, whether financial investors or industrial partners. The problem is rarely a lack of value. More often, the company is difficult to read.
Many company sales collapse long before the formal verification phase takes place. From a sell side advisor’s perspective, the reason is rarely technical and rarely related to what happens during due diligence. The real issue emerges much earlier.
Selling an SME requires method: mistakes such as unrealistic valuations, poor preparation or the wrong buyer can destroy value. Planning and transparency ensure continuity and success.
