Acquisition Entrepreneurship

Buying an established business means you can acquire an ongoing operation, which includes all associated contracts with stakeholders, real estate, employees, inventory, customer base, brand, know-how, etc. The old owner of the business does not close their operation but rather "hands it over" or sells it to a new owner. Both small, medium, and large companies opt for such a step.

Retirement, desire to develop in new areas, inability to reach a compromise in companies with more than one owner,
no successor in the family…

• Time optimization: An established business or company has already passed the initial market tests, such as preparing the right business model, business plan, finding business partners, building a customer base, strategically developing a product or service, finding suitable suppliers, brand development, marketing products or services, finding real estate or business premises, all of which takes a lot of time.
• Ensuring sales and procurement channels: It is well known that most companies or brands fail in their first year of operation. By acquiring established businesses, you can easily avoid this. Most importantly, you can start operating immediately and with minimal risk.
• Financial optimization: A new owner of an established business avoids all initial investments, such as securing start-up capital, initial marketing costs (advertising, promotion, preparation of corporate identity, brand launch, etc.), initial investments in preparing business premises, finding real estate and business partners, equipment for operations, etc.

By acquiring an established business, the new owner will only need to focus on upgrading – injecting new, fresh energy into the company, adding their ideas and visions, and thus continuing the story according to their own inspiration.

The Proevent team will first listen to your ideas and business visions. We will carefully consider which business solution is most suitable for you (acquisition of a business with established operations, acquisition of a business without established operations, establishment of a new company). After carefully listening to your business ideas, we will proceed with a market review. Proevent thus acts as an intermediary between buyers and sellers of businesses.

1. Initial consultation with the client we will represent;
2. Careful market review: We have contact with a large database of potential clients who wish to sell their businesses, and we also cooperate with a company that has been engaged in brokering the sale of established businesses for many years;
3. Careful business review: Once we have identified the possibility of acquiring a specific "company," we will prepare a careful business review (legal, financial, tax, and business risks associated with the acquisition);
4. Meeting between buyer and seller: Based on a signed non-disclosure agreement (NDA), we will arrange the first meeting between you (the buyer) and the seller to verify eligibility for purchase;
5. Representing your interests (negotiations with the seller): Once the basic agreement and buyer qualification are completed, we will continue to represent your interests and strive to find the best consensus regarding the acquisition of the business from the seller. At this point, you will sign a non-binding agreement on the key terms of the purchase agreement;
6. Closing the deal: The closing of the deal is a signed purchase and sale agreement, a business share sale agreement, an asset sale agreement, etc., and of course, the final payment of the purchase price within the agreed deadlines and the final takeover.

We emphasize: In companies being sold, the former owner is still actively involved in the business, but upon acquisition, the company's management also changes. For small businesses, it is important to note that the functions of manager and owner are usually combined in one person.

The value of a company is measured in two ways – one is the basic financial picture of the operation or company, the other is non-financial (brand recognition, company tradition, customer loyalty, etc.).

What exactly and how do we evaluate a company:

• Asset valuation: We assess the value of the company's assets (assets – liabilities = company value). Asset valuation is usually performed primarily for companies that are currently not operating;
• Market comparison: Comparison with similar companies in the market, review of financial reports and transaction databases;
• Discretionary cash flow: Earnings available to the entrepreneur both as an owner and as a manager of the company;
• Investment multiplier: The time it will take for your investment in the business to be recouped.

• Business tradition (more than 10 years means greater stability and trust);
• Business growth trend (last 3-5 years);
• Positive discretionary cash flow (more than EUR 50,000; if less than EUR 30,000, it is already negative);
• Competitive advantages in the market (in know-how, equipment, in the product or service itself…);
• Customer/client loyalty and trust in our brand;
• Industry growth (whether the industry we are investing in is successful);
• Location of premises, diversification of customers and suppliers…