CASE STUDY: Consultation in selling parts of the business, International Kindergarten OÜ

Introduction

International Kindergarten was founded in Tallinn in 1997, initially named International English Kindergarten. In 2002, the kindergarten was renamed as International Kindergarten. Since 2007, the business has been operating in downtown Tallinn with the goals of ensuring early education to children utilizing playful teaching and learning methods. CFO Advisor offered a helping hand when the owner of the business decided to sell and exit the business.

Challenges

The sale of a company is not a simple process, and it becomes increasingly difficult without extensive experience, an education or training in the field. This creates further complications in understanding and phrasing the terms and conditions of legal documentation, especially in cases where earlier experiences are limited or non-existent. As such, the primary challenge was providing support and assurance to both parties involved (buyer-seller) through the creation and implementation of a clear and thorough plan of action.

Purpose

The purpose of the project was well-defined: to conduct and finalize a satisfactory, understandable sales process for both parties, during which both a realistic sales price and the value of the company would be identified and defined. An additional goal was to set contractual terms that would be suitable for both parties.

Necessary steps to complete goals:

  • Confirming the underlying principles of the sales price; calculating the price according to real value.
  • Thorough coordination of the entire transaction, including the interactions between buyer and seller.
  • Consultation regarding third party interactions.
  • Setting the terms of payment between buyer and seller.
  • Setting the terms, strategy and timetable for the business exit.
  • Overviewing and evaluating the terms and conditions of the contract according to a mutual agreement and goal.

Results

  • A smooth, efficient, understandable sales process for both the buyer and seller.
  • A satisfactory result in both conducting and finalizing the sale.

Feedback

„I had started the sales process of my business, and after more than half a year’s worth of negotiation and communication with buyers, I had reached the point where the basic tenets of the deal were agreed upon. How everything was supposed to be conducted in exact terms, however, was very confusing. I consulted multiple of my friends and acquaintances who are also active in various businesses but came to no clear conclusions. I felt that I definitely needed someone competent and trustworthy to help me pinpoint my next steps. I am very glad that the services of CFO Advisor were recommended to me. Since the deal included a lot of non-material variables, real estate and a very delicate target group, CFO Advisor really had to be completely on-board and thorough in their doings. In a calm and timely manner, potential solutions were offered along with detailed plans of action to come to a fitting result for every party involved. Throughout the process, I felt assured in everyone’s involvement and the validity of every recommendation. I am very pleased that I decided to use the services of a professional business consultant. It provided me with certainty every step of the way and concluded in a successful transaction. “

– Eve Aus (owner and board member)


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