Sellout of a Business

The Issue

More often than not, many businesses reach a stage of their development in which the only alternative for them is to be sold out because they are not sustainable enough to withstand the competition on a long-term basis or because there is nobody to inherit their ownership and management.

The first set of questions in such a situation includes the following: Is my business sellable at a price that is higher than what its tangible assets are worth? Are there suitable buyers and who are they? At what price and under what terms and conditions would they buy the company?

The second set of questions goes as follows: Do my financial statements reflect reality? Is my business ready for sellout so as to give a fair reflection of the real situation to the buyer’s advisors and to prevent the occurrence of hidden problems that could render the benefits of the deal senseless?


Scope of the Service

  • Assessment of the sellability of the business and the possible terms and conditions of the sellout;
  • In-depth financial review and due diligence to check whether the financial statements tally with reality and to make the relevant adjustments;
  • In-depth legal review and due diligence of all assets and liabilities, contracts, agreements and relationships with third parties and their adjustment to the investor’s expectations;
  • Analysis of the possible negative tax effects and choice of a lawful approach to prevent them;
  • Valuation of the company to be sold for the purposes of the deal;
  • Drafting and signing of a Memorandum of Understanding in the preparation of the deal;
  • Participation in or conduct of the negotiations on the terms and conditions of the deal;
  • Conclusion of the final agreement, receipt of payment and handing over of the management.

Objective of the Service

The objective of the service is to provide everything that the seller of a business needs: from the preparation of the company for sale, through the selection of potential buyers, the pricing and negotiations on all terms and conditions of the deal, to the conclusion of the final sellout agreement, the payment and the handing over of the management.


Advantages of the Service

We have cohesive teams of business advisors, auditors, lawyers, tax and financial experts who can participate in the implementation of a business sellout from the original concept to its successful completion.


Price of the Service

The price of the service may range from several thousand to several tens of thousands of BGN, depending on the complexity and value of the deal.

Location

Our team

Emil Popov

Group managing partner

Emil Popov has a Master’s degree in Financial Management. He is the founder of the practice of Kreston BulMar in Bulgaria in 1996. He has profound knowledge of finance, accounting, taxes, law and corporate management. He has hundreds of professional publications and trainings on accounting, taxes, finance and management. In his over 20-year professional career he has gained vast experience in resolving complicated business cases, restructurings, mergers and acquisitions of companies of different size and from different industries. Since 2014 he has been member of the Management Board of the Bulgarian Chamber of Commerce and Industry.

Our publications in the expert site balans.bg

  1. 4.3.3. Осчетоводяване на Производствен Процес
  2. 4.3.2. Пример за Калкулация на Себестойност в Производство
  3. 4.3.1. Общи Правила за Отчитане на Производство
  4. Плащане на възнаграждение за положен личен труд от съдружник, който е самоосигуряващо се лице в същото дружество
  5. Изготвяне на график за ползване на платен годишен отпуск за 2011 година
  6. Ползване на данъчно облекчение за намалена трудоспособност от лице на трудов договор. Размер на облекчението и деклариране на ползването му.
  7. Работодател не може да задължи служител в предизвестие да използва платен годишен отпуск от предходна година без основание.
  8. Ползване на основен платен годишен отпуск по чл. 319 от КТ от лица с намалена работоспособност в годината на настъпване на инвалидизирането.