What you should know or do before you contact us


Guidelines for sellers

Selling a Business

Do you contemplate selling your business? Have you already decided to sell your company?

Typical reasons for selling a business are:

  • Lack of natural successors in the owner’s family
  • Intention to realize capital gains on the capital invested in a business
  • Desire to change the type of business/industry
  • Financial difficulties and need for external funding


Potential schemes for selling your company:

  • sale to a strategic investor – the buyer is a competitor or a company operating in a similar industry
  • sale to a financial investor (private equity fund, private investors) – typical strategies of financial investors is to invest in growing companies, stimulating and monitoring their development and divest after 3–5 years (either through sale to other financial or industry investors or through an IPO on a stock exchange) or realize profits via sophisticated refinancing and recapitalization schemes
  • IPO on a stock market – initial public offering and selling the shares to individual and institutional investors
  • sale in a Management Buy-Out (MBO) – sale of the company’s shares to the current management team, typically with the support of external investors and a bank debt
  • sale in a Management Buy-In (MBI) – similar to MBO, but acquirers being an external team of managers


What investors will look for when buying your business:

  • industry in which the company operates and the degree of competitiveness of its products and services
  • human resources within the company and their potential
  • financial results
  • organizational structure
  • competences and experience of management team
  • growth potential
  • potential to generate positive cash flow in the future


How to prepare for selling your business:

  1. Estimate the intrinsic company value – only after properly assessing how much the business is worth to the investor, you can reasonably and effectively negotiate the terms of the transaction, first and foremost – the price.
  2. Ensure that company’s legal and financial documents are all in order – this will show that the company is well-organized and secure in terms of organizational and financial performance.
  3. Prepare transparent explanations of difficult issues related to your business – each company has had difficult times and issues that may have decreased its value in investor’s perception; however, openly presenting and explaining them can help you gain trust of investors.
  4. Present a clear growth strategy – secure strategy for the future development of the company can increase confidence and willingness to pay higher prices for the business.
  5. Build or solidify management team – as the owner, you are probably crucial to company’s operations; prepare your top staff for management takeover in advance.


Learn more about how we can help you sell your business at a better price!


Guidelines for buyers

Are you considering an acquisition of a company in Poland? Would you like to grow your existing business in Poland through acquisitions? Are you interested in M&A in Poland?

Typically, acquisitions take place when:

  • a company is interested in rapid development, not possible organically
  • a company intends to expand the scale of its business and enter a new market segment, which is frequently easier and more efficient by the means of acquiring another company
  • an investor seeks opportunities for achieving high returns on investment
How to choose a takeover target?

Selecting appropriate target companies is a complex process and requires analyzing a range of different aspects, such as the:

  • Probability of uninterrupted business operations after a change of ownership – transfer of relationships with customers, operational management, know-how, etc.
  • Organizational structure and its dependence on the current owner
  • Synergy effects with the buyer’s business
  • Target valuation
How to successfully complete a takeover?

Step 1. Identify acquisition targets

Depending on your investment criteria, there can be only a few to several dozen potential acquisition targets; a larger number may indicate that your criteria are not precise enough. The key is to quickly and efficiently identify targets and screen them for value to the buyer. This stage ends with drawing up the long list of acquisition targets.

Step 2. Verification of owner’s willingness to sell the company

The proposal to acquire the selected company is then discussed with the target’s owners. For them, it is always a difficult decision. Only a few of the owners are willing to consider selling their business. It is important that you properly present the value of your proposal to the target’s owners and emphasize the benefits (financial and non-financial) to them. This stage ends with the short list of acquisition targets.

Step 3. Due diligence of the target and negotiations of transaction terms

Prior to negotiations, the value of the acquisition target should be assessed. Reliability and accuracy of gathered information about the company should be verified. For this purpose, various valuation methods are used (most commonly, discounted cash flow method (DCF), comparative method and net asset value method). To achieve the second objective, a due diligence examination of the target is performed – a comprehensive analysis of the company with a focus on operations, financials, legal and tax issues.

6 key principles that will help you succeed in acquisition projects:

  1. Involvement of experienced acquisition experts, for whom the transaction is a top priority.
  2. Close cooperation with your technical and analytical team in order to properly evaluate the acquired business and design the post-acquisition plan.
  3. Clearly defined decision-making process based on objective criteria.
  4. Securing debt or other forms of required financing in advance.
  5. Flexibility of transaction terms other than price, such as: future role of the selling owners, payment terms.
  6. Continuous development of a strong relationship and trust with the target owners.

If you intend to grow your company through acquisitions, see how we can help you execute acquisition projects in Poland.

Learn more about acquisitions and ask us about potential transaction opportunities.