Buying a company

When you’re considering buying a company, you need to clearly define your goals and acquisition criteria: are you planning to buy another company in your sector to expand your current business or do you aim to increase your company’s role in the value chain?

See our tips for buying a company.

Selling a company

A successful sale is the result of consistent value creation throughout the company’s life cycle. Our best advice to business owners is to make sure your business is always ‘ready to be sold’ – this way you’ll maximise its value even if you don’t have immediate plans to sell it.

See our tips for selling a company.

Financing acquisitions

Acquisition financing typically consists of several elements as well as both equity and debt financing. We have gathered useful information on how you can find the best solution for you.

See our tips for financing acquisitions.

The acquisition process

An acquisition is a long project for which preparations must be made well before the actual acquisition process starts. The business acquisition consists of several processes, which are partly carried out simultaneously.

See our tips for a successful acquisition process.

Determining the value of a business

Determining the value of a business is an essential part of acquisitions. There are three common methods of valuating a business.

See our tips how to successfully determine the value of a business.

Mergers and acquisitions as part of your business strategy

Growing through acquisitions

Acquisitions are a great way to grow, as you get established business operations, talented staff and cash flow generation from day one. With business acquisitions as part of your growth strategy, you can quickly increase market share in your home markets or branch out into a whole new market. If you are thinking about expanding into new markets, it’s crucial for you to understand the market and your customers. To do this, you can leverage the expertise of the target company’s staff and its customer relationships. 

Acquisitions can also give you access to new technology and products and help increase your production capacity. In some cases, it’s also possible to scale the benefits in the production and new technological capabilities to your current business. As you integrate two businesses into one, you can often streamline production or administration by restructuring processes and removing overlap. You want to create synergies by ensuring the whole is greater than the sum of its parts. 

Acquisitions from the bank’s point of view

Bank looks at acquisitions primarily from the perspective of risk management – this requires you to have a clear and credible business plan. If you apply for financing from us, we’ll assess the profitability of your core business and the cash flow it generates. In most expansion investments, including acquisitions, repayment ability and the project’s eligibility for financing largely depend on the state and profitability of your current business. If your core business is profitable, running smoothly and generating a steady cash flow, you’ll have the means to pay off your debt and invest in growth. 

When evaluating your business, we primarily focus on stability of cash flow, business plan and leverage ratio. We also carry out a thorough assessment of the target company’s competence, competitiveness and profitability, evaluate the compatibility of the two businesses and look at how professional the acquisition process is and how the risks are managed. Most successful companies growing inorganically make small and medium-sized acquisitions in proportion to their size and risk-bearing ability, while gaining knowledge of the market and experience in the acquisition process.