Sellers of companies occasionally find it difficult to sell their company for the following reasons:

  • The Company is non-core to traditional buyers
  • The Company’s profit margin is too small
  • A Lack of buyers who can be identified
  • Buyers offer too low a price to the seller
  • Every so often we come across a seller who has $1 million EBITDA and a buyer cannot be found for the business. In this case we might want to offer another financing solution
  • We list the company on a public exchange such as Germany
  • We expand the company by bringing in equity capital
  • We increase the market cap valuation of the company

This strategy enables the seller to gain the following benefits;

  • The seller obtains liquidity by selling shares in public market and gains more value from their holdings by going public.
  • The seller can expand the business operations with equity capital otherwise not available to a privately held corporation.
  • The seller can also borrow against his public shares as a source of tax-free funds.
  • The seller has the opportunity to use his public stock as currency to acquire other companies.
  • After selling said the shares, the seller can still retain overall control of company.