According to a new study conducted by the advisory company Marktlink, many Danish companies choose to avoid potential foreign buyers when the company is to be sold – and also do not look outside the borders when acquisitions are to be made.
Danish companies choose to a far lesser extent to look across borders for potential buyers in a buying or selling scenario.
This is according to the latest Marktlink Monitor report from the M&A advisory company Marktlink.
The survey, which was carried out among 1,000 Danish, English, Dutch, Belgian and German business owners, shows that the Danes, to a much greater extent than their like-minded Europeans, do not want business trade – neither sale nor purchase – across national borders.
Only 7 percent prefer to sell their company to a foreign buyer, and would instead prefer to sell to a Danish company (45 percent). It is unfortunate, but understandable, says Jesper Duelund, Managing Partner in Marktlink Denmark.
“A Danish-owned company chooses as a starting point to prioritize selling to a Danish buyer, because it is immediately the easiest: you know the language, the culture and can expect a – presumably – faster contract processing and process,” says Jesper Duelund, and continues:
“But it is often a hasty conclusion. In recent years, it has become much easier to negotiate and enter into agreements with foreign buyers, partly because it has become more normal to buy across national borders. “
Foreign flirting gives better prices
Jesper Duelund advises companies on the purchase and sale of companies across Denmark – and on the purchase of and sale to foreign companies and investors. He finds that Danish companies that actively take a potential foreign buyer on board often end up with a better bid for their business, because it pushes up the bid price.
“By taking offers from foreign potential buyers, you also get a better understanding of what you are worth, which of course can either lead to a sale of the company to a foreign investor, but it can also help in the negotiation process against more relevant Danish buyers,” says Jesper Duelund.
That assessment contrasts with the respondents’ own perception. Only 31 percent of Danish business owners respond that they expect their business to become more interesting to foreign buyers in the next 12 months, which is the lowest among the nationalities surveyed. The greatest belief in self-worth is seen among Germans, where almost 60 percent believe that they are worth more to foreign investors.
“We need more companies to understand their own value, and one of those ways is outside Denmark’s borders. Danish companies are skilled and valuable – especially from a foreign perspective – and that knowledge pushes you and your company in the right direction to achieve your growth goals or sales ambitions in a different but also fruitful way,” says Jesper Duelund.
Om Marktlink
Marktlink was founded in 1996 in the Netherlands and has since grown to become the largest independent M&A house in the high-end SME segment in Northwest Europe. The international team consists of 300 M&A specialists who support companies in transactions between 5 and 100 million euros. With its international network and 17 offices in Europe, including an office in Copenhagen, Denmark, Marktlink connects buyers, sellers and investors worldwide. This has resulted in 130 successful transactions last year alone.
Website: www.marktlink.com
Source: it-kanalen.dk
