The sonntag method
The consultancy market shows numerous methods of determining the purchase price. We have moved away from the classical methods of theoretical corporate valuation and instead determine the real purchase price of the companies on the market.
We are the only provider in Germany to obtain purchase prices on an anonymous basis, which exceeded the expectations of our clients last year by an average of 78 percent. Discretion is one of the most important criteria when selling your own company. The operation should not be restricted, employees should not be disturbed and customers should not be scared. Therefore, selling the company must lie in trustworthy M&A hands. With our anonymous bidding process, you know who is willing to pay how much for your company and nobody knows that you are planning to sell your business. With each step we take, you will be close to the action and define what information you want to reveal.
How do I sell my company?
A company sale with sonntag follows a two-phase model, with timetable planning and determined goals. The project teams work focused and concentrated with you during the whole process to ensure an excellent transaction.
- In the first phase we undertake your company our anonymous bidding process. Hereby we focus on research of potential buyers and the creation of the basic process documents such as the information memorandum.
- Once you approve the list of potential buyers, we will send out our anonymous presentation letters by post.
- Within a (two-week) deadline, potential buyers should submit a first purchase price indication for your company. If necessary, we comprehensively follow-up with all parties to obtain the broadest possible range of indications for your company. If you’re convinced by the purchase price offers, you can decide whether and with whom you want to usher in the second phase for the sales transaction.
- In the second phase, we’ll reveal your identity in order to conduct initial discussions with the selected potential buyers so that you present yourself and your company and get to know the potential buyers.
- By signing the purchase intent, you and the prospective buyers confirm their interest in selling and buying a business. This puts your company to the test, the due diligence, on the part of potential buyers.
- In the last step, you and the buyer enter into the sales contract negotiations – ideally with the contract conclusion!
Theoretical assessment vs. anonymous bidding process
Anonymous bidding process adds 70 % more value
The company value should never be confused with the actual price that you can achieve on the market. This could mean that if demand for certain goods is low, the price is significantly lower than the actual value, or conversely, prices for coveted goods are significantly higher than the calculated values. Emotional reasons, the liquidity of the market, the rationality of the market players, panic and euphoria, as well as very different views on the future course of business can make the difference.
As the only consulting company in Germany, we initiate a “blind” bidding process for all parties, being interested in our clients companies – without disclosing their identity of course. You will receive an average of 14 offers for your company from the market in a maximum of three months. The expectations of our clients are usually exceeded by 70% on average. You then decide freely based on actual demand, whether you are willing to sell and with whom you may enter into negotiations. In 2018 we were awarded for this innovative, in Germany unique form of market valuation. WirtschaftsWoche awarded us the seal of excellence as part of the Best of Consulting Awards for SMEs – M&A.
Convince yourself of the results: References