148 What’s the seller’s view?

Gerard,

I guess you are the type of Dutchman who looks but doesn’t buy, or rather you bought the company but you didn’t pay anything out of your own pocket. Of course, you will pay eventually from future profits. We have two components to our plan. The first is still an upfront amount, the second is a series of future benefits depending on the result from their customer groups. We are now entering the next phase of talks. Everyone is excited and we are surrounded with good advisors. We are in competition with other buyers, but everyone knows that our company and the selling party are the best fit together for the future. This is because we have commercial synergy effects, particularly on the cost side.In your case, you have bought a company from a private equity firm so you need to be cautious. For people in this industry, buying and selling companies is their everyday business. With that knowledge and experience they are always a step ahead of an entrepreneur like yourself. Do people from your company work in the company you have purchased, or do they run the business independently as if nothing has changed? Do you have a seat on the advisory board or other company body to keep in touch and maintain control? How do you think a vendor would prefer to set up a sale? They have sold the company, but if they are entitled to revenues they will probably still want to be involved. Indeed, they are probably the best option for dealing with the people who work there. They will prefer to have these former colleagues working in a stable environment. How do you think the vendor would want to best secure this? Has your vendor discussed or negotiated these issues with you?

Regards,

Erik