Do you want to sell your company or buy a company? The interim manager is a very useful multi-talent in the M&A process!
There are also tasks for interim managers in the M&A area that offer great advantages. HANSE Interim gives you an overview:
Vendor due diligence for sellers of companies
If an interim manager is deployed to set up a new sales structure, for example, he or she will identify the existing weaknesses in this area. By disclosing the weaknesses and implementing the resulting optimization measures, he is able to formulate the current state and the target concept, develop a package of measures, ensure their implementation and document them.
For this subarea, the company is then no longer “attackable” in the context of a sales process: A buyer will not find a situation here that would be unknown to him or would be assessed differently by him.
And an optimized sales structure is only conducive to a transaction, possibly even increasing the purchase price.
Commercial due diligence for corporate buyers
Interim managers not only have management or line experience; their industry experience is at least as important. Those who have worked in an industry or sector for years or even decades know typical processes, market specifics and, above all, are well networked. Buyers, on the other hand (especially investment companies), often lack this deep market knowledge. But knowing the “industry whispers” is one of the basic requirements for a successful company acquisition.
It therefore makes sense to make use of the specific knowledge of such an interim manager. Industry experts are involved in the due diligence process for days or weeks at a time, for example, and analyze the companies in terms of their marketability, product portfolio and innovative strength. The question of how well management can respond to daily challenges is also typically examined by the “industry colleague”.
And sometimes the appointed “commercial due diligence expert” even takes a liking to the company up for sale and becomes a co-investor or new managing director. This then also solves the succession at the top of the company.
The IM as MBI candidate
Many former employed executives would like to become entrepreneurs themselves once again. Often, they then buy into a company as external shareholders while simultaneously joining the management (management buy-in, MBI). However, the complete financing of a purchase price for the shares to be acquired often causes problems for MBI candidates, especially if all shares are to be sold. For this situation, the involvement of an investment company is an option, which finances a major part of the purchase price – and in most cases then also becomes the majority shareholder.
For the investment company, it is particularly important in the case of a complete sale of the shares by the former owners and their departure from the management, not to have a management vacancy. New managers who only buy in together with the investment company as part of the transaction lack experience in the company. In such a case, interim managers who have already worked in the company for a while at the time of the transaction and know the personnel and the existing problems are the best candidates!
The interim manager as an information anchor
Interim managers are often used as CROs in turnaround situations, e.g. also when the house banks have lost confidence in the previous management and want to see a governor who enforces the turnaround – if necessary also against internal resistance.
If the company to be restructured is sold, speed and a waiver of formalities are necessary. The interim manager, who is already active in the company, is indispensable as a source of information and contact person for potential investors. He knows the “skeletons in the closet”, the acting persons and has a truly neutral view of the company and the situation.
Conclusion
Interim managers are an important support in M&A processes. They can be of great benefit to sellers and buyers due to the following factors, among others:
- They have many years of professional and management experience,
- industry experts,
- specialize in special situations
- are neutral in their view of the company and committed to the task at hand, and
- are used to providing solutions under difficult conditions and under time pressure.
Support by interim managers in the M&A process – we will find the right person for you – please contact us!
Your HANSE Interim Team
Andreas Lau and Christian Heuermann
Management
