Who to sell to?
A family member, the people running it, a competitor, a fund or a permanent buyer: what each does to the name, the team and you.
What the buyer decides
Whoever buys a company decides much of what happens to it next: to the name, the team, the customers and the person who built it. Here we compare the most common ways out for an HVAC, electrical or plumbing company in Portugal, ours included, with what is good and less good about each. This is not advice. It is what we see, said plainly.
The possible buyers, side by side
A family member
- Horizon
- The family’s. It can be long, if someone wants it and knows how.
- The name
- Stays.
- The team
- Stays, and already knows the newcomer.
- Who runs it afterwards
- The relative who takes over, often after years alongside the owner.
- How they pay
- Often they do not pay, or they pay over years out of what the company itself generates. The owner rarely ends up with liquidity.
- What they ask of you
- Time to prepare the handover, and agreement among the heirs.
- When they sell again
- They do not. The next generation faces the same question.
The people already running it
- Horizon
- Long, if they can finance the purchase.
- The name
- Stays.
- The team
- Stays.
- Who runs it afterwards
- Those who already manage it.
- How they pay
- They rarely have the money. They usually pay with debt secured on the company itself, or in instalments over years.
- What they ask of you
- That you finance part of the price and trust the company to carry the debt.
- When they sell again
- It depends on who financed the purchase.
A competitor or a group in the sector
- Horizon
- No deadline, but decisions stop being about your company.
- The name
- It usually disappears once there is a common brand, common purchasing and common logistics.
- The team
- The functions that exist on both sides (invoicing, purchasing, part of the office) are in question from the start. The technical crews usually stay, because they are what is short.
- Who runs it afterwards
- The group’s structure. Decisions on prices, hiring and investment move up a floor.
- How they pay
- Often well, because they count on the savings of combining. Part may depend on results.
- What they ask of you
- A short handover.
- When they sell again
- Rarely, because they integrate. After a while there is no separate company left to sell.
A fund
- Horizon
- Three to seven years is the most common, because the fund has a term and investors with a date.
- The name
- It depends on the plan. A fund that puts several companies together will want a single brand before it sells.
- The team
- Usually stays. The fund comes in through the board, with a plan and targets.
- Who runs it afterwards
- The existing management, with the fund’s targets. Some bring their own manager, others do not.
- How they pay
- Often the highest price, with debt in the company itself (and, frequently, part reinvested by the owner).
- What they ask of you
- That you stay and deliver the plan until the next sale.
- When they sell again
- They sell. The date is the right thing to ask for in writing.
A permanent buyer, like us
- Horizon
- It does not buy in order to sell, and its investors’ liquidity is designed not to depend on selling the companies.
- The name
- It carries weight with customers and is not changed lightly. In a growing group, it may come to join a common brand.
- The team
- Stays, because it is what is being bought. Whatever is shared with the group comes in gradually and is discussed first.
- Who runs it afterwards
- We answer for the company from completion. Whoever runs it next is prepared with you, preferably from inside the company, and the companies in a region come to share a structure for estimating and planning.
- How they pay
- The whole share capital, at a price the company can carry. Part is paid over the following years, tied to the transition. It is rarely the highest price.
- What they ask of you
- Usually two to three years of transition, agreed in writing before completion.
- When they sell again
- It does not buy to resell.
Two paths that are not buyers
An intermediary does not buy. They look for buyers on your behalf and help you negotiate, and that can be worth it when you want to compare several offers. It has a cost, and an open process shows the company to more people. If you take that path, ask them to explain each buyer to you in the terms of this page.
And there is the way out nobody likes to talk about, which is closing. You receive what the assets are worth, and you lose what took decades to build: the team, the customers and the name.
How to choose
A few questions help. What weighs most for you: the price, the people or your role after the sale? How long do you still want to work in the company? And who, inside it, already decides without you?
If what matters most to you is the highest price, it is probably not us. If it is that the company carries on, with the team it has, in the hands of someone who stays to answer for it, it is worth us talking.
Speak with Pedro
Pedro Teixeira Duarte
President
From the first call to signature, the person you deal with is Pedro. You can call without giving the name of your company: the first conversation is private and commits you to nothing.