Frequently Asked Questions

Everything you wanted to know

If a potential buyer approaches you, that might mean your business is of interest to other companies as well. At this point you need to consider the following questions: Why negotiating with only one potential acquirer? Will the acquirer who approached you offer a fair value for your company, knowing there are no other potential acquirers? Will you get the best after-sale terms and outcomes for your customers and staff?

It may not surprise you to know that in many cases, business owners who engaged us after receiving such an approach, actually sold their businesses to another acquirer in better terms and valuation than those offered by the first potential acquirer.

There are many different methods for business valuation. A traditional ‘desktop’ valuation involves the application of mathematical formulas. Companies typically use the multiplier method which multiplies the operating profit by a common figure (depending on several variables including the industry sector, past deals in that sector and other factors).

We at Head-On believe that acquiring a company is principally about strategic motives, therefore, serious potential buyers will evaluate the future performance rather than the past performance of your company. This approach aims for a transaction based on the future potential and the synergy between your company and the buyer’s company rather than past performance.

Proper preparation is a key factor in any business transaction. The better prepared the business is for the sale process, the smoother and easier the process shall be when eventually executed, increasing the odds for a successful transaction.

As part of the process, we meet with clients who are planning on selling their company within 2-5 years, we analyze the company and identify the reasons why potential a buyers would be interested in acquiring them: is it the IP? the customer base? the staff? The market positioning? the expertise in a niche market? Accurate analysis of the strengths and weaknesses of your company will allow us to diagnose and manage aspects of your company that can be improved by the time you make the decision to sell.

Many business owners wish to secure the best future for their company, and for their staff.  Business owners who actively run their businesses, consider the members of their staff as their friends and partners, not just colleagues. In a family business, the relationship may be even closer.

Usually, the potential buyer understands that an experienced staff is a key success factor for the company, and therefore will regard them as an indispensable asset. 

We will advise you when and how to announce the sale to your staff. Open and honest dialogue with your staff is crucial for a successful process. Selling to the right prospect can create exciting new opportunities for your team. 

This, of course, depends on the sector and the market in which your business operates.

Although many might think it would be best to approach their competitors, it is rarely the case. The best acquirers are those who perceive your company’s operations as complementary to their existing operations, both domestically and internationally. In addition, about 40% of the transactions we have completed involved the selling of Israeli companies to international acquirers.  

Being a part of TransLink, an international Mergers and Acquisitions network, allows us to make direct personal contact with leading decision makers in various industries around the world and thereby locate the most suitable buyer for your company.

Selling a business is a long and complex process. It may take 12 months to complete the entire sale process, while faster transections will take 8-9 months to complete and other transactions may take 18 or more months. Therefore, preparations for selling the company should be made long enough before the destinated date of competing the sell.

This important question depends on various factors such as personal factors (age, health status etc.), external factors such as trends in the industry in which your business operates, and internal factors related to your company’s business performance. Based on those factors we at Head-On conduct non-binding meetings with business owners to examine together when would be the right time for them to sell their companies.

The process of formulating a growth strategy is based on an in-depth, professional analysis of the market and of the competition as well as identifying the assets and strengths of the company. This allows the company’s management to clearly identify the key strategic dilemmas and the main growth alternatives, explore the future growth engines, define the key success factors and formulate an action plan to achieve the strategic goals. The growth strategy plan produces a clear outline of goals and objectives that enable refining the managerial and business focus.