They participated in our transactions
How to sell an online store or SaaS?
First, view your business from the investor’s perspective. Ask yourself honestly: What value will the investor receive after the purchase? What are the real risks? What is valuable, and what is not? Estimate when the investment will pay off.
For e-commerce, assume the return on investment will be calculated over 3-4 years. In SaaS, this depends heavily on the specifics of the transaction and the company. Key factors typically include a business growth rate of 30-60% year-over-year, cumulative monthly revenues, and EBITDA.
The e-commerce industry is challenging, with many companies struggling with profitability or stagnation. A simple model of selling a profitable business at a multiple valuation based on EBITDA is unlikely to suffice. We invite you to cooperate with Venturepackt for knowledge and model solutions on how to conduct the entire process effectively.
What does the company sales process look like?
The process depends on the situation and the stage at which we join the project:
- Initial analysis: We collect key data, prepare the management board/owners for the transaction, and get to know the company ourselves. We ask numerous questions to extract the substantive essence.
- Valuation: We determine which assets will be part of the transaction and carefully value them, using mathematical models or reliable market benchmarks.
- Scouting: During the reality analysis and valuation stage, we identify groups of potential buyers. We present the offer in a targeted manner to selected companies, avoiding broad, indiscriminate postings to ensure a focused approach.
- Building interest: In the initial phase, we answer questions, build trust, and ensure that potential buyers feel involved in a professional and serious M&A process.
- Offer and transaction model: Our goal is to efficiently bring both parties to a point where they feel close to an agreement on price, model, and PMI vision.
- Due Diligence: Once key transaction parameters are determined, we ensure that the buyer quickly receives documents confirming the previously presented data.
- Negotiations: While the entire process involves negotiation, we handle the most challenging conversations, focusing on facts, filtering emotions, and understanding both parties.
- Agreement: We support the law firm in obtaining the necessary arrangements and documents for the SPA (share transfer agreement).
- Post-transaction support: We assist in the smooth takeover and integration of the purchased e-business (PMI).
Completed transactions
The process was challenging due to the involvement of financial investors in 4Swiss, in addition to our team. The primary challenge was to align the interests of all three parties. We were aware that an earn-out would be necessary, and that we would need to remain involved in the project.
The discussions were difficult, and in hindsight, it was highly beneficial to have Venturepackt acting as an intermediary. They facilitated the communication of interests between both parties and managed the process and emotions, which were crucial for the established model.
Consequently, after the transaction, we merged into a single entity that will operate under a new model for the foreseeable future. All parties agree that the transaction was a success.
Eliza i Marcin Pawełczyk
The decision to sell our online store was challenging, but with the support of Venturepackt, the entire process proceeded exceptionally smoothly.
The team meticulously managed every detail, from valuation and investor search to the finalisation of the transaction. They ensured that the sale was conducted swiftly and efficiently.
We are highly impressed with their professionalism and wholeheartedly recommend Venturepackt’s services to anyone considering the sale of their e-business.
Are you trying to sell your business on your own?
This is quite a challenge for several reasons: managing emotions, the time-consuming nature of the process, the need for knowledge of market models and benchmarks, and the lack of a fresh perspective and independence that an advisor can provide. However, it is possible, and we assist with such projects.
We invite you to a consultation where you can reflect on your thoughts and discuss the aspects that concern you most. You will gain a fresh perspective, inspiration, and confidence that you are heading in the right direction.
Venturepackt in numbers
5 countries
100%
~ 8
1-15
Frequently Asked Questions
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.
Check the valuation of your company!
You certainly have an idea of the value of your company. Verify what our models will show.
We have simplified the assumptions to quickly and approximately determine the order of magnitude for the value of your e-business.
