Company development and exit strategy
To hand over or / sell one's own company and subsequently exit is a difficult path and often resembles the idea of disposing of a child. The easiest way to go about it is to have an innovative spirit, creative power and sustainable success. Justifiably, one asks the question: why sell now, when it is at its best?
The answer is obvious: because sales processes usually take longer and need to be professionally prepared. A well-prepared company achieves a higher sales price and reduces the duration of the company purchase or sale!
From the point of view of both buyer and seller, the company is well positioned if:
- The seller's and buyer's vision regarding the key points of the deal are clear and aligned.
- The company/assets are innovative and sustainable.
- The future prospects (technology, market and competitive development, production sites, personnel, financial management, etc.) are very good.
- The best minds are part of the company (know-how, processes, productivity, company culture, partner and customer management, etc.).
- The continuity of the company is not dependent on a few top performers.
- The financial management fits
- and much more.
The consolidation of all these issues ultimately leads to an overall picture of the attractiveness and to a price idea of the transaction business.
Project example: Company development and sale of TIG:
TIG (Technische Informationssysteme GmbH www.tig-mes.com) was founded in 1994 to develop and market Manufacturing Execution Systems (MES) worldwide. The owner of newTask, Wolfgang Frohner, was co-owner and CEO of TIG.
The software solutions developed by TIG (Manufacturing Execution System MES) are marketed worldwide by TIG's own sales force as well as by professional partners. The customers are market leaders in the supply sector of the automotive industry, medical technology, as well as electronics and semiconductor technology. The conclusion of maintenance contracts with a high service level leads to long-term customer loyalty worldwide. In total, well over 10,000 production machines have been networked. TIG was sold in 2016 to the world market leader for injection molding machine manufacturing. Wolfgang Frohner was project manager of the sales process from the initial discussions to the "signing". After the sale, Wolfgang Frohner served as CEO at TIG for another 3.5 years until he left the company in 2020 after an orderly handover to the new management (earn-out model). During this time, his main tasks included the rapid development of the company, as well as the integration of TIG into the buyer's group structure.
Project goal/ customer benefits
- With the sale of their company, the shareholders of TIG created a future-proof succession plan for their company. At the time of exit, TIG, headquartered in Rankweil (AUSTRIA), had 70 employees and was a global provider of MES solutions with subsidiaries in Schwertberg, Jork (USA) and Shenzhen (China).
- With the acquisition of TIG, the buyer rounds off its product portfolio of digitalisation solutions with an MES system and thus further expands its competitive position as market leader. All in all, a WIN-WIN deal for both sides.