The companies in the SME segment generate half of the total annual profit of all companies and employ more than half of all full-time employees in Denmark.
It is therefore important that the skills that exist in small and medium-sized businesses are embedded and passed on to a new generation when the current owner-manager wants to sell their business and hand over responsibility to a new owner.
It is in the interest of all parties involved that a business transfer is as efficient as possible. In principle, a business transfer is not a complicated process, but there are some areas where both seller and buyer have a crucial role to play in ensuring a professional process.
It starts from the very first day you take the helm of a company
As a new owner-manager, it's a good idea to build the company on a foundation that provides both the best basis for the operation and development of the company and the optimal starting point for a sale of the company when you get this far in the process. Even if a sale is not an option for many years into the future.
Among other things, the foundation should be based on well-described workflows and processes, an overview of profit centers and an appropriate company structure. A good foundation is not only relevant for a sale, but also helps to create a well-functioning organization with great value throughout the lifetime of the company.
Another very important area to strive for is to make the company independent of the owner-manager. Division of responsibilities and delegation of responsibilities and tasks are among the means to achieve this goal. If there is too much dependency on the owner-manager and too many skills disappear with the owner-manager, the company's value base is significantly weakened.
A company that is independent of the owner-manager is therefore not only a benefit for the owner-manager and the profits he or she can leave the company with, but is also a great advantage from a socio-economic perspective. Because knowledge and skills do not disappear with the owner-manager, and jobs and annual earnings for society are retained.
Get your feet right from the start
There are many reasons to take over one of the many thriving businesses in the SME segment if you want to start your own business. For example, only 54% of all start-ups exist after 3 years, while the same is true for 90% of owner-managers who have taken over an established business.
In addition to being clear about industry interests and your own prerequisites for running a business, it's important to be aware of the options available to finance the purchase of a business. Entering into a partnership or working with the Danish Growth Fund are some of the financing options available. It's also not uncommon to use bank or vendor financing.
The better prepared you are as a buyer, the better your chances of continuing to run a well-established business.
Anchoring knowledge, expertise and skills
Ultimately, both the seller's and buyer's preparation is a win-win for the Danish economy and a large number of jobs, with all parties benefiting from the knowledge capital that can be carried forward in the continued operation and development of Danish SME companies.
If you are considering selling or buying a business, you are welcome to contact us for a no-obligation chat about the preparations you can make to optimize your process.
Phone: 70 20 04 16
Email: info@m-plus-a.com