Sales preparation

Realise exits

Fast, promising, effective.

Good preparation is half the battle. If value drivers are identified and developed at an early stage in the preparation for a sale, the potential buyer can be convinced of the attractiveness of the business model and the company can be sold and, ultimately, at a higher sales price. We know both points of view – yours as a seller as well as those of a potential investor – and work out an optimal starting situation for the sale in close cooperation with the management of your company. In addition to the current situation, our analysis also includes the future growth potential, which creates real added value.

Proﬁt as a seller in several ways

Independent company analysis – both weaknesses and potential deal breakers as well as value drivers and upsides
Development of strategies and measures for sustainable value enhancement
Preparation for the sales process – in terms of content, organisation and mentality
Acceleration of the transaction and reduction of the effort in the subsequent due diligence process
Improving the negotiating position towards the buyer side

maconda accompanies you honestly and competently on the journey to a successful company sale.

Commercial Review for sellers

Informative, confidence-building, future-orientated.

A CDD has become an integral part of any M&A process involving private equity investors. However, there are some situations where it makes sense for the vendor to initiate a commercial review itself. Especially in uncertain times, vendor commercial support can prove to be a win-win for all parties involved. A commercial review (often called a commercial factbook) speeds up the sales process by reducing the amount of information required by prospective buyers in the run-up to the transaction. This can contribute to a successful company sale.

Meaningful use, especially in certain situations

Especially in non-transparent niches, in highly dynamic markets or in times of crisis: When market data are hardly available or no longer valid and the performance history loses its informative value, so the demands on quality and credibility and the significance of the commercial review generally increase. An informative and pragmatic commercial review knows how to deal with uncertainty factors in the market, to verify hypotheses and to answer the typical questions of prospective buyers. It is also a valuable contribution to the sales documentation and very helpful for the M&A team.
If there is a lot of liquidity in the market, competition among investors intensifies. If many potential investors are approached, the prospect of success decreases for each individual. Some will then shy away from the DD costs and not enter the process at all. However, if a high-quality commercial review is offered, with reliable information at an early stage, the chance of a larger circle of interested bidders also increases.

Business planning

Imaginative, methodical, well-founded.

Whether the planning exercise is part of your operational sales preparation to identify and quantify value drivers or it is part of a vendor commercial support process to promote or actively steer the planning, we can help you. We are highly experienced in not only in validating business plans that have been submitted, but also in deriving them ourselves. In doing so, we contribute methodical planning expertise, identify the greatest growth potentials and present measures for their development. From an investor’s perspective this means that not only will an attractive growth story be highlighted but also that the future upside potential is on the agenda.

Methodology and fields of analysis:

Preparation, moderation and follow-up of several strategy and planning workshops
Determine the foundation (“the company today”, DNA)
Discussion of conceivable growth options with pros and cons; ranking
Derive the qualitative and quantitative planning measures together with the management
Coaching and preparation of integrated financial planning and technical implementation
Testing the assumptions against the market
Identifying additional medium- to long-term growth options beyond the business plan

From numerous CDDs and other mandates, we are well-practised in identifying and quantifying growth potential. Use our methodical know-how for your business plans!

Case studies

Water and ventilation technology

Initial situation

A leading manufacturer of plastic pipes for the construction and industry is reviewing strategic options while considering the divestment of a subsidiary specialising in plastic products for home & garden modernisation

Task

Vendor Market Review to shed light on companies and addressed markets for water and ventilation technology; in-depth report as part of the sales documents for the M&A process

maconda contribution

Assessment of the business model with multiple business units; market-related carve-out requirements
Characteristics of the respective product range, addressed target group (do-it-yourselfers, installers, industrial customers and planners) as well as area of application
Historical and future market development based on a detailed market model
Assessment of covid effects and their longer-term impact
Detailed competitor analysis: competitive position in the different markets served, USP
Investigation of the customer base per business area; central purchasing criteria of the customers and their fulfilment
Analysis of selected foreign markets with regard to DIY and wholesale landscape, market development and supplier structure
Plausibility check of the business plan and identification of further potential

Caps & Closures

Initial situation

Private equity investor from the USA intends to sell an internationally active manufacturer of plastic caps and closures

Task

Development of a Vendor Commercial Factbook that explains the products and addresses the complex global set-up of the company with its many plants, products and customers

maconda contribution

Presentation of the value chain and core competencies of the company
Extensive research, primarily in trade media and industry studies, as well as conducting many interviews with industry experts for the relevant product groups and regions
Detailed analysis of the company’s international markets and its positioning with a focus on the growth regions of Latin America, India and Southeast Asia
Elaboration of the characteristics of the end markets Personal Care, Food & Beverage and Home Care (product life cycles, complexity of packaging, drivers and effects on packaging, etc.)
Comprehensive analysis of the purchasing behaviour of internationally operating FMCG suppliers and proﬁles of key customers
Validation of the business plan and identification of upside potential

Ophthalmic surgical products

Initial situation

German financial investor prepares to sell a leading distributor of ophthalmic surgical products

Task

Creation of a Vendor Commercial Factbook to provide investors from outside the field with easier and faster thematic access to the complex subject matter in terms of products and invoicing

maconda contribution

Presentation of the market drivers and trends in ophthalmic surgery and their significance for the company’s products
Highlighting the different protagonists in the highly regulated German health care system and sound analysis of the complex, heterogeneous contractual landscape
Highlight the different billing modalities and reimbursement practices and their impact on the procurement behaviour of ophthalmologists
Assessment of the heterogeneous competitive landscape and the positioning of the target company
Analysis of demand and the customer and client structure
Assessment of the business potential in neighbouring foreign markets

RFID solutions

Initial situation

Shareholder of a leading manufacturer of technical systems for access control, locking systems, time recording and their electronic management plans to sell the company

Task

Vendor Market Factbook to describe and explain the business model, the non-transparent market and the competitive positioning to prospective buyers

maconda contribution

Analysis of the current and future acceptance of RFID-based solutions in the home markets as well as in America, Middle-East and Asia, e.g. among amusement park operators; understanding of future customer requirements
Investigation of the historical and future development of the relevant driver markets by region and segments, in particular gyms and amusement parks in various price categories
Identify potential differentiating factors and how the company meets them, assess positioning within the global competitive landscape
Identiﬁcation and evaluation of attractive markets and growth paths

Reality checks in various leisure facilities and evaluation with the help of numerous expert interviews from the broad maconda network

Sausage casings

Initial situation

German industrial group considers selling a leading international manufacturer of sausage casings with a broad product range and high export share

Task

Independent analysis of the company and relevant market by means of vendor commercial due diligence to reduce the barrier to entry for potential bidders in the run-up to the transaction

maconda contribution

Detailed assessment of different types of sausage casings (fields of application, price level, processor requirements etc.)
In-depth analysis of the processed meat market and the niche market for artificial and natural sausage casings
Detailed analysis and characterisation of the relevant regions worldwide (Europe, Russia, America, North Africa), especially the regional industrial structure, meat and sausage consumption, forecast market development, etc.
Evaluation of the USP, product programme and business plan by product type and region respectively.

Conducting structured customer interviews as well as a large number of exploratory market interviews with meat and sausage producers, wholesalers, competitors, associations and other industry experts

Enquiries

Whether exit, carve-out or succession. A successful company sale needs to be well prepared. We will be happy to accompany you on the way – contact us!

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