As a corporate finance consultancy, we guide you with the next step in your IT entrepreneurship. Such a next step could be taking over a company. This can lead to growth in turnover, capacity and knowledge. Our national network ensures that we are quickly seated with the right party to be able to realize this step.
Perhaps you, as an entrepreneur, are ready for something different and want to (partly) cash in on the value of your company. Then you have come to the right place at MMR.
In addition, we can provide you with expert guidance in management buy-in or management buy-out processes of one or more shareholder (s) or the participation of personnel.
Based on your future wishes, we draw up a joint plan and help you realize the next step in your entrepreneurship.
How do we do that?
At the start of a corporate finance process, it is important to have clear which path you have already taken and what the strategy of a company is for the coming years. MMR Consultancy sees it as its task to fathom, understand and supplement the strategy of entrepreneurs. The correct positioning of your own company and the associated strategy ensures that you can quickly estimate the motivation of the other party to want to realize the transaction.
Some strategic issues in a takeover are:
- What does it cost to build the software that we want to develop as a company?
- (How fast) Can an international party with a global customer base sell my software product?
- What do you think is the scope that must be achieved to achieve optimal customer satisfaction, continuity and return? Does your company (in the near future) comply with this?
The answer to these questions determines your positioning when entering a process. We are happy to discuss this with you during this phase, before entering a purchase, sale or investment process. Together with a good numerical analysis of a company, the positioning of your company determines the success of a transaction.
Pricing depends on various factors within a transaction. In the preparation, we look extensively at the positioning that you as a party can take in the process. In addition, we also want to be financially aware of all the details, so that we can make a good estimate of the expected turnover and result level and their predictability. Before we enter the market or make a bid, we usually know all the ins and outs of a company, so that few surprises can occur during the process.
Finally, pricing is also determined by the negotiation tactics that we set out together with you. For example, we can choose to enter into discussions with several parties, whereby we must define the quality of the process for you. It is also possible to talk exclusively with a party, whereby the negotiation result depends on timing and interaction between you as a customer and us.
In summary, a good preparation and negotiation method is essential for a good result.
If an acquisition is settled entirely in cash, the structuring of the transaction is less important. However, it often happens that part of the purchase price is not yet paid and is entered as an earn-out, subordinated loan and / or share capital in the transaction. The objective of the parties is, for example, that a purchase price can be made variable, that there is an extra source of financing that provides extra continuity and / or that some commitment from the seller is guaranteed. In any case, the result is: in this transaction there is downside and upside potential, which is an essential part of the whole.
MMR supports you with this structuring, which often involves the transaction, there are up to 50 variants as the outcome of a structuring. Before you as an entrepreneur agree on a structuring, we calculate the consequences of different possible structures in different scenarios, so that you can make a good estimate of the total economic impact of the transaction.
Obviously, having in-house economic, legal and tax knowledge during acquisition processes is essential. MMR Consultancy has this knowledge, both within our own office and in our network and will support you in this. We achieve our pre-agreed objectives by making no concessions to result-orientation, quality, creativity and commitment.