It varies. We typically estimate up to 12 months for the process. Each transaction is unique; sometimes it’s beneficial to wait until the year ends to confirm results. Other times, it’s advantageous to wait until after a season when a strategic investor has capital surpluses and is preparing for the next year. There are also instances where the process can be completed in 2 months due to the need for quick recapitalization, although this requires certain compromises, assumptions, and alignment of intentions. On average, our M&A processes are completed within 5 months. Our shortest transaction took 2 months, while the longest took 8 months.

There are many valuation methods available. Initially, we send a brief to understand the overall picture of the business, which helps us decide which valuation method to focus on. For each transaction, we select a valuation that is appropriate and realistic for the business. Most often, we use the replacement value, DCF, post-merger synergy effect, EBITDA multiplier, and the comparative method.

In the next step, we send a set of several dozen in-depth questions. We need to understand the current state of the business, its diversification, competition, historical revenues, scaling potential, specific assets, sales structure, cost structure, and the potential buyer’s perspective on the defined assets.

Contrary to appearances, the answer is not straightforward, but generally, we would say “No.” You can sell part of the shares to a VC fund to gain capital for development or exit, possibly at cost, if your intention is a hard exit. The key factors include scale, market validation, potential buyers, and the value it will bring to them. Therefore, there is always a chance, but the shorter the operating time and the smaller the business, the lower the real chance for an effective exit. At Venturepackt, we focus on selling businesses with a minimum valuation of 0.5 million euros.

Yes, negotiation is a crucial aspect of the transaction. A key role of a transaction advisor is to manage emotions during negotiations. Our responsibility is to facilitate discussions on the merger model and terms in a manner that ensures both parties feel they have developed a strong model and are prepared for further cooperation during the post-merger integration (PMI) process.

Our target businesses are valued between EUR 0.5 million and EUR 10 million, which is the range we most frequently operate within. While we do handle smaller or larger transactions, these are carefully vetted and verified by us. We look for additional advantages or differentiators that directly impact the potential success of the transaction.