Mergers & Acquisitions

Buying a company as an investment – a profitable investment opportunity
Without a doubt, acquiring a company means much more than a mere capital investment whose performance is to be followed with (passive) hope and trepidation. It is a courageous step towards an immense responsibility - and at the same time, an unprecedented opportunity to significantly influence one's financial investment with successful entrepreneurship. Another advantage is the substantially higher return that can be achieved compared to traditional asset classes. A stable business model and a smooth handover of operations are considered critical factors for a successful business acquisition.
High return
The goal of every investor: to generate a return commensurate with the investment risk. Companies must be viewed as unique assets - and so must their chances. While some companies have an almost risk-free return due to stable sales and costs, companies with strongly varying earnings achieve lower prices. A double-digit return is usually considered a prerequisite for company acquisitions. Given the low returns of classic investment forms, a company acquisition thus offers an exciting perspective.
Taxability – why is such a high return on investment assumed for small businesses?
The answer is based on risk premiums given more difficult tradeability (no liquid market) and more fragile structures of small companies. At the same time, these circumstances have advantages: The manageable design makes it easier for investors to exert direct influence on the company's fortunes. In difficult times, measures such as cost reductions, external and internal negotiations, etc., can be implemented directly; in successful phases, appropriate steps can be taken to increase opportunities and returns. This flexible approach increases the value of the investment.
Purchase criteria
When buying a company as an investment, it is advisable to consider the following three questions: Is the business model stable? The development of sales and profits, the development of the industry, the company’s age, the distribution of sales among different customers, the distribution of know-how in the company, the recurrence of sales, and the competitive situation provide information in this regard. Does the company have the potential for expansion? Possible cost savings, marketing optimization, development of new business areas, etc., must be examined. Can a succession without friction be ensured? Top priority: Ensure continuity, and prevent loss of customers and staff, if necessary, employing incentive programs, salary adjustments, etc.
The emotional aspect
The buyer must fit the company just as accurately as its employees. A company can often be equated with a life's work, so the emotional component must always be prioritized in a succession solution.
When is the right time?
Demand is increasing with the shift in focus due to the loss of attractiveness of conventional investment forms. At the same time, the market offers unexpected opportunities due to pandemic upheaval. As with any purchase, the focus is not only on the budget factor or willingness to pay but also on timing - which is synonymous with supply and demand. More important than these components, however, is the partner who brings you together with exact listening, versed know-how, and negotiating skills with the individually suitable company. Only the proper support at your side - during the entire transaction process - opens doors and enables access to "hidden treasures" through profound market knowledge and a significant network.
Why with us?
Over two decades of industry experience, an elite network of nationwide scope, and absolute discretion enable us to offer the guarantee promise: You search, we find - by knowing who fits together. The most critical success factor in a company purchase is the right partner. We are looking forward to meeting you!