April 1, 2010

More than a project?

Selling their company shares is a very important isssue for the shareholders. This fact is more noticeable in SME’s. Generally, this sales will influence their expectations from life and their dreams. Since the sales of their company shares is such a major issue, the shareholders pay great attention to this subject.

Like in all other issues it is easy to overdo also in this subject. Generally, the overdoing is seen in two points.

-Because the shareholders give such an importance to the sales of their company shares, they can’t spare the necessary attention and time to the other issues in their business.

-Generally, the sales of the company sales is made to a company stronger than their company. The shareholders try to gain the admiration of the purchaser by giving decisions which they later regret.

The process of selling company shares shouldn’t be different from the various projects that the company has undertaken. It  should be considered as a project and should be managed by one of the shareholders because of the importance and further influences on the sales. While this project is handled, all the other activities of the company should go on as if this project was not existing. Specific investments, thought up by considering the potential purchasers, concerning managerial and production functions should be avoided.

In reality, the investments to be made in the company after the sale varies depending on which potential purchaser has bought the company shares. Until the moment that the company shares are transferred to the new acquirer, you can’t say with certainty who the purchaser will be. It might also help you to remind yourself of the following fact: The companies that find a partner or an acquirer the hardest are those companies that have almost no or very few weaknesses. It is not easy to develop such companies further. Also the acquirers might fear that a change to be made in such organizations might lead to failure.

Leave a comment

Your email address will not be published. Required fields are marked *