In the M&A business, we usually act with English terms. However, when it comes to the most important aspect, the purchase or sale price of a company, various components have an important impact on the final price.
Wir erläutern wieso der Unternehmeswert nicht der Wert ist, der am Ende auf dem Konto landet. Wir schauen uns einmal gemeinsam die Bestandteile des Unternehmenskauf- oder -verkaufspreises an. Was ist ein earn-out. equity bridge, threshold, ecrow und wieso ist es essentiell diese Begriffe zu verstehen, um am Ende zufrieden zu sein.
Axel Schulz, M&A consultant and managing director of EUROCON GmbH, Kiel, will be there again.
Purchase price and enterprise value – Why these terms are not identical
When selling a company, the purchase price is not equal to the value of the company. In this podcast, we explain the key factors that influence the final purchase price.
Fixed purchase price and variable shares (earn-out)
Ein fixer Kaufpreis bildet die Basis vieler M&A-Deals. In manchen Fällen wird jedoch ein variabler Anteil in Form eines Earnouts hinzugefügt. Dies sichert den Verkäufer ab, wenn er an ein zukünftiges Wachstum des Unternehmens glaubt. Earnout-Zahlungen werden oft über zwei bis drei Jahre verteilt und hängen von bestimmten finanziellen Meilensteinen ab.
Cash/Debt-Free-Bewertung
The purchase price calculation is usually based on a Cash/Debt-Free Valuation. All liabilities are deducted from the value of the company, while existing funds are added.
Networking Capital & Threshold
A company needs sufficient working capital to function smoothly. This Net Working Capital is also taken into account in the purchase price determination. Deviations from the defined threshold value can increase or decrease the purchase price.
Locked-Box Principle
That Locked-Box Principle is a method of setting a purchase price in which a company's financial data is set at a specified price. economic cut-off date ("Locked Box Date") can be used as the basis for the purchase price calculation.
Warranties and Retention
To hedge against risks and possible warranty violations, part of the purchase price is often retained for a certain period of time. This so-called Escrow ensures that buyers do not have to be liable for unexpected problems. This amount is often deposited in an escrow account for a certain period of time.
Equity Bridge
A fair purchase price calculation requires a transparent Equity Bridge. It is an essential concept in M&A transactions that establishes the link between the Enterprise Value (enterprise value) and the Equity Value (equity value). It is used to explain the discrepancy between the general market value of a company and the amount that is actually paid as the purchase price.
Conclusion: Transparency and communication are crucial
Successful M&A transactions are based on clearly defined clauses and transparent communication between buyer and seller. Both parties should understand the calculation methods and calculate early on to avoid disappointment.
Key Takeaways
- 01
Purchase price ≠ enterprise value
Der Verkaufspreis hängt von vielen Faktoren ab, wie z.B. Schulden und Cash-Reserven.
- 02
Earnout-Klauseln – Ein variabler Kaufpreisanteil dient oft als Brücke, um zukünftiges Wachstum fair zu berücksichtigen.
- 03
Cash/Debt-Free Valuation
Der Kaufpreis wird um Schulden und vorhandenes Cash angepasst.
- 04
Equity guarantees and withholdings
Käufer sichern sich gegen mögliche Garantieverletzungen durch Einbehalte ab.
- 05
Transparency and upfront invoices
Klarheit und präzise Vertragsgestaltung sind essenziell, um Konflikte zu vermeiden.
