Practical Guide for Selling and Buying a Firm (Guía práctica para negociar una firma)

Abstract

Financial textbooks offer multiple options to value a firm. However, few of them show the practical aspects related to negotiating a firm (selling or buying a firm).

In this note we present some suggestions to be taken into account when selling or buying a firm. At the same time we present a brief review of different valuation methods. At the same time we present a summary of the COMPASS methodology to assess the productivity of a firm.

It might seem at first sight, that there is a symmetric mirroring between the seller and buyer of a firm. However, there exist some specific activities to be carried out by each of them.

Note: Downloadable document is in Spanish.

Keywords: Business plans, selling a firm, buying a firm, negotiation

JEL Classification: G31