Would you sell your house without renovating it first?Then why sell your company without preparing it?
- Scudieri
- Apr 16
- 2 min read
Updated: Oct 23
When it comes to selling a company, the chosen approach can make all the difference in the final value of the transaction. Many business owners end up accepting offers below the real potential of their business because they didn’t go through the proper preparation process. In this scenario, there are two main M&A consulting models: Transactional Consultancies and Full-Service Consultancies.
The transactional consulting model Transactional consultancies focus solely on facilitating the sale. The goal is to find a buyer and close the deal as quickly as possible. However, this model can pose significant risks, such as:
Lack of preparation: There is no strategic diagnosis before the sale, leaving vulnerabilities exposed during due diligence.
Superficial valuation: The company’s valuation is based solely on financial multiples, without considering competitive differentiators.
Non-strategic negotiation: Without proper planning, the business owner may concede on crucial points, resulting in a final price below expectations.
Lower financial return: The lack of structural adjustments can devalue the company and make a successful sale more difficult.
The full-service M&A consulting model Unlike the transactional model, full-service M&A consulting focuses on maximizing the company’s value before the sale. The process includes:
1️⃣ Deep diagnosis and strategic adjustments:
Corporate governance: Structuring to reduce risks and improve attractiveness to investors.
Operational efficiency: Optimizing processes to increase margins and EBITDA.
Financial organization: Structuring data and documents for a transparent and efficient due diligence.
Review of contracts and legal structuring: Mitigating liabilities and reinforcing the security of the transaction.
2️⃣ Strategic valuation: The company’s value is not just calculated based on market multiples, but also on its growth potential, competitive differentiators, and strategic synergies with potential buyers.
3️⃣ Ongoing support throughout the process: The consultancy works alongside the business owner from the initial preparation to the closing of the deal, ensuring that each step is taken in the most advantageous way.
4️⃣ Better negotiation terms: Companies that go through this structuring can increase their valuation by up to 450% before the sale, in addition to negotiating favorable clauses such as earn-outs and other terms that maximize the financial return for the business owner.
Count on Scudieri for full-service M&A consulting Selling a company should not be a rushed decision. With the full-service M&A model, we ensure that the business owner has control of the process and walks away with the best deal possible.
The best time to sell your company is not when you need to, but when you want to.
If you want to know if your company is ready for a strategic transaction, schedule a free diagnosis with our team. We can help you structure the best path to maximize your business’s value.
