3 keys to selling an eco-friendly business

The green transition has had a notable impact on the economic system. Our business fabric is becoming more efficient and is based on approaches aimed at protecting the environment. The business models, the methodologies that configure them or the materials used in the production processes are some of the most striking factors of change. Projects and businesses with a strong ecological base are a return opportunity for many investors. Do you own such a business and would like to sell it? If so, pay attention, so let’s talk about it.

Selling a business can be relatively complex. Identifying buying opportunities or making a good sales proposal become determining factors. In addition, the adoption of the necessary measures and precautions is essential if the objective is to avoid risks. In fact, when we talk about selling companies we are referring to a business segment as such and, therefore, it is advisable to receive the support and advice of a specialized team at all stages of the operation.

If you are evaluating the possibility of putting your company up for sale, it is important to keep in mind some factors that can define the success of the procedure. In this article, we share with you a selection of keys to selling a business an effective way.

find the buyer

The first question that comes up after making the decision to sell a business is exactly how to go about it. As in any buying and selling process, the use of certain tools is necessary. Designing a commercial and prospective strategy to identify the ideal buyer will become the central axis of the operation. Also, it is advisable to keep in mind that during the sale phase you must remain anonymous throughout the process until the final phase.

The acquisition of companies constitutes a very promising investment model for those people (individuals or legal entities) who seek to obtain new sources of long-term profitability. However, the most common is that, when establishing the first contact, a contractual agreement with a confidentiality clause is formalized. In this way, the procedure can be carried out in a context of anonymity in both directions, that is, neither you as the seller must reveal your identity nor, on the other hand, the buyer must do so. Thanks to this, certain potential risks are eliminated on the basis of certain guarantees in terms of protection.

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Prepare the pre-contract

Have you located one or several potential candidates or buyers? In that case, the first step will be to provide information about your business. The preparation of a small dossier gathering the most relevant data such as the activity carried out, its methodologies, its results or its evolution over time will facilitate the negotiation process. In this way, the potential buyer will be more likely to design an offer that is more adapted to the real value of the company.

When carrying out the process, it will be essential to prepare a pre-contract within which the nature of the agreement is defined. Thanks to this, the buyer will be able to count on a more precise and transparent perspective and, in short, the evaluation of its viability will be much simpler with a view to finance the purchase of companies.

In the pre-contract, the data of the two parties involved in the agreement must be reflected. During this phase the company must also undergo a mandatory audit. The process may require a little more time, as it will require an accurate analysis and a series of checks that will help the potential buyer gain more confidence and know with greater certainty what type of business they are going to acquire.

complete the sale

Once the last phase is completed, the parties involved seal the sale transaction under the conditions previously established. By developing in a context of total transparency, the degree of satisfaction is guaranteed in both directions. As a seller, it is not advisable to allow certain external subjective aspects (eg the buyer’s opinion of the value or nature of the company) to determine the selling price. Reducing it based on these type of conditions or factors is not recommended and can be detrimental to the profitability to be gained.

It is an operation that requires certain knowledge, so the most advisable thing to do to obtain the expected results is to receive assistance or advice from a team of professionals specialized in the sector who help direct the sales process in the right direction.

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