Acquiring an enterprise or its business operations
If you are purchasing an entire company through a corporate acquisition, you must be able to find a reliable method of defining the value of the enterprise in question. General ways of determining the value of a business are calculating its discontinuation value, asset value and productive value.
If you only purchase a portion of an existing company’s operations, the term used is asset acquisition. The advantages of this include that the acquisition applies to specific asset items and the customer base, for example, but all old tax liabilities and other hidden risks remain with the selling enterprise.
You may also find yourself in a situation where you are looking for someone to continue your business among your family members or the closest interest groups of the company, e.g. within the executive management, personnel, or closest partners.
The correct sales price is the price at which a transaction can be made. In small and medium-sized companies the price is almost always a compromise between the expectations of the seller and the buyer.
Whatever your situation may be, it is advisable to employ the services of a third-party expert for preparing the various analyses and reports. This will prevent later surprises.