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Buying a business
- 6 benefits of using a business advisor

Many owners of Danish companies are considering a strategic acquisition of another company. In many cases, acquiring a company can be the shortest route to realizing growth plans or securing access to resources, knowledge, and facilities. At Business Broker , we Business Broker experience as advisors in +200 changes of ownership of Danish and international companies. This applies to both Sale of a business and strategic acquisition. See a Example of a strategic acquisition of a company, in which Danish company Collectia acquires a Norwegian company. Partner in Business Broker Ulf Steiness provides an overview of some of the benefits of using a business broker as a project manager in an acquisition process:

Advantage 1: You get your strategic foundation for the acquisition in place from the start

You will achieve the optimal business acquisition when the strategic clarification is fully in place early in the process. With Business Broker your advisors in an acquisition process, you will have two dedicated business advisors with knowledge of the market within your industry. Through a structured clarification process, we define the framework for the acquisition together with you. The clarification process includes, among other things:

What is the purpose of acquiring a company? Is it to gain access to new geographical markets, specific skills or resources, an expanded product range or services?
What size business can and will you buy?
What is your budget?
Which geographical location is relevant?
Do you want a business to integrate into yours or operate as a standalone entity?

Business Broker your opportunities from the outside and brings external financial, commercial, and negotiating skills to the acquisition process, gained through many national and international transactions.

Advantage 2: We search the entire market for relevant companies for you

We often see that business owners have pre-selected some companies that they consider relevant to acquire. Sometimes it turns out that this is not the optimal match. On a confidential basis, we can go out into the market for you and identify the relevant companies within the framework we have agreed upon. This can open up great opportunities that you may not have considered yourself.

Advantage 3: We don't wait for a business to be put up for sale

On your behalf, we contact the owners of the relevant companies with full discretion. This also applies to companies that have not immediately expressed an interest in a sale. This paves the way for you to buy at the right price when we initiate a dialog at a time when there are no other buyers.

Advantage 4: Our anonymous contact with companies makes acquisitions easier in niche markets

If you are a player in a niche market and are considering an acquisition, there is a high risk that competitors will very quickly become aware of your interests if you explore the possibilities for acquisitions on the market yourself. This will often drive up the price. If you hire Business Broker advise you, you are guaranteed complete discretion and anonymity until both you and a potential seller have signed a confidentiality agreement.

Advantage 5: We take the initial acquisition discussions on your behalf

Business Broker trust and confidentiality in the dialogue with the potential seller. The dialogue includes, among other things

Possible transaction structures
Initial discussions on future leadership
Clarify possible synergies - administration, finance, sales, production
Communication of indicative price and agreement on the next steps

Advantage 6: Business Broker your agent in the acquisition of a business

With Business Broker your business broker, you reap the benefits of our experience as advisors from over 100 business transactions. We negotiate the best possible deal on your behalf. The process involves:

Negotiating a Letter of Intent (LOI) that is loyal to indicative price, market conformity.
Optimizing price structure - the right price is not only the value of the shares, but also includes a number of other factors such as the seller's role and involvement in the future setup.

What is the process of acquiring a company?

Once the letter of intent to purchase has been approved by both parties, the transaction must be completed. Business Broker continue to act as your coordinator during this phase, working closely with your accountant and lawyer as well as the seller's advisory team as we carry out due diligence. Prior to the final negotiations with the seller, your lawyer will prepare a final agreement (SPA) with accompanying warranty catalog and appendices. As your business broker, we assist the lawyer to ensure that the commercial basis of the purchase agreement corresponds to what was agreed in the letter of intent and that there is consistency between due diligence the warranty catalog. Business Broker your interests until your acquisition of the right company becomes a reality.