Basic ways of selling the business

The simplest way to sell a company is to directly negotiate with a preferred investor (Private sale). The advantage of such a procedure is the chance of quickly closing a transaction. On the other hand, the disadvantage is that a potential investor does not feel the competitive pressure and this means a weaker negotiating position for the seller. It is assumed that this way of selling the company will lead to more demanding negotiations and potentially less favorable price of the business for the seller (www.ocenovanie-firiem.sk) and other conditions of the transaction.

The Private Auction (Auction) is the most common way to sell large companies. In this case, investors are contacted directly, based on the potential potential stakeholder (domestic and foreign competitors, suppliers and subscribers - companies that might be interested in vertical integration, not least financial investors). The advantage of such an approach is to create a competitive environment, maintaining an acceptable level of confidentiality. The disadvantage is that this approach does not necessarily generate sufficient interest and also that investors who may be interested in buying a business may be omitted.

In Slovakia, the little-used option of selling a business, its part is so-called. IPO (Initial Public Offering), which means the first public offering of shares. There may be several reasons for such a process: the need to increase the capital of the company, ie to obtain additional financial resources, optimize the company's capital structure, increase the credibility and visibility of the company on the market, The indispensable condition for IPO is however a functioning capital market and a good legal framework.

The last option to sell a business is rather typical for the public sector. This is a privatization. Investors are addressed by a public call (ad). As with a private tender, the advantage is that the competition is in the process of selling the business, the disadvantage is that it is complicated and time-consuming and also does not have to generate sufficient interest.
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