Home » Insights » Sale of NetModule AG – Leading manufacturer of communication products for M2M and IoT
A company can only be sold once. Thus, the sale is expected to yield the highest possible proceeds. Through Steinbeis M&A’s comprehensive transaction consulting, which includes strategy development, transaction support, and emotional guidance throughout the entire process, this goal is precisely achieved.
We see time and again that even very successful companies have a corporate strategy that is only partially clear and easy to communicate. If there is a lack of a convincing strategy, it can often result in purchase offers that fall short of expectations and potential, which can lead to the process being terminated or -even worse – a sale that is undervalued. Therefore, Steinbeis M&A examines the strategy, by default, before the actual start of the sales process. It can make sense to first insert a strategy module in which the corporate strategy is neatly developed and the financial potential is derived from it.
To address this issue, Steinbeis M&A has developed a dedicated module that involves developing a positioning strategy, identifying unique selling propositions, and outlining implementation details. Only then does the actual sales process begin.
The advantage for the seller is clear: on the one hand, optimised medium-term planning, on the other hand, the potential group of buyers can be better defined. Possible synergy potentials can thus be identified specifically for each buyer group and a corresponding prioritisation can be made in the process.
As a result, SCM&A regularly achieves extremely attractive revenues, while at the same time maintaining manageable and very targeted processes.
Ultimately, the satisfied customer is the goal of Steinbeis M&A. Using the example of the sale of NetModule AG, we can demonstrate the successful, holistic approach.
In January 2021, Steinbeis M&A was commissioned by NetModule AG to find comprehensive growth financing for the company, based on the company’s medium-term plan. The analysis of the plan identified strategic optimisation potential in both positioning and differentiation. Likewise, initial discussions have revealed that financing is difficult, but various market participants have expressed an interest in acquiring 100% of the company.
Moving forward according to the original plan of “growth combined with comprehensive financing” would have led to a sub-optimal valuation and thus probably to the termination of the process. This is what happened with the two previous unsuccessfully attempted sales processes.
The Steinbeis M&A network is a real advantage here. Numerous discussions were held with technology and market experts to enable an optimal future positioning. A study tailored to NetModule AG by an independent market and industry expert was commissioned to show the attractiveness of the markets and the market leadership of NetModule AG. On this basis, the 5-year medium-term planning was revised. Only then was the sale of the company launched.
Due to the clear strategic orientation, the ideal group of buyers was prioritised and targeted according to strategic fit and possible synergy potential. This approach was global. Here, it proved crucial that Steinbeis M&A has excellent industry knowledge and unique access to the companies.
The approach was a complete success: more than 1/3 of the strategists approached held talks. More than 20% made an offer, the majority of which remained in the process until the end.
As we were able to precisely assess the synergy potential for the buyer groups, the potential for value enhancement was individually addressed to the prospective buyers in the preparatory meetings and the purchase price expectation was justified. This made it possible to obtain attractive offers from all prospective buyers and to maintain competition until the end.
The shareholders of NetModule AG were all more than satisfied with the proceeds of the sale. As a sign of satisfaction, we were mandated by one shareholder for another sales project immediately after the sale.
After two failed processes in advance, the cooperation with Steinbeis M&A led to success. We are extremely satisfied with the cooperation and the results. Above all, the preceding strategy work, the excellent industry knowledge and the professional and at the same time always empathetic management of the process were criteria for success. We felt very well looked after during the whole time. I particularly liked the entrepreneurial approach and the fact that the Steinbeis M&A partners are all entrepreneurs themselves. This made me feel very well understood and advised. Dr. Andreas Danuser (Aktionär NetModule AG)
After two failed processes in advance, the cooperation with Steinbeis M&A led to success.
We are extremely satisfied with the cooperation and the results. Above all, the preceding strategy work, the excellent industry knowledge and the professional and at the same time always empathetic management of the process were criteria for success.
We felt very well looked after during the whole time.
I particularly liked the entrepreneurial approach and the fact that the Steinbeis M&A partners are all entrepreneurs themselves. This made me feel very well understood and advised.
Conclusion for Danuser: A company is best run by an entrepreneur.
with M&A experience sold!
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