>>> Succession

Before Selling

Thierry Biggoer, Associate

Selling their own company is an incisive step in the lives of entrepreneurs. It requires much refl ection and the consideration of many factors, as our talk with Udo Gröber demonstrates. He sold the majority stake of his company Muller to CGS in 2017. Muller has become the nucleus of today’s Muller Group.

There are many, widely varying reasons that in the end convince entrepreneurs to sell their company and place it into new hands: no suitable successor, little experience in internationalization, no resources to deal with the increasing pressure to consolidate within the sector, a lack of technological expertise or fi nancial strength for further growth… to name just a few. It is often a combination of factors.

Take your time
For Gröber, arranging for his succession early on was the occasion to start thinking about selling the company. This was joined by his desire to promote the company’s global growth. His goal was to improve Muller’s position on the international markets, not just
with aftermarket services, but also with a complete infrastructure from sales to manufacturing and on-site customer service.

He wanted his succession to be free of time pressure, well organized, and taken care of during his fi fties. Like most entrepreneurs in his situation, Gröber found it important to ensure the continuity of the company, for the well-being of its employees and customers
yet also for its new partners.

In the right hands
It is one thing to be prepared to sell your company, but another to find the right partner or buyer who corresponds to what you envision. The search requires much energy and the decision needs considerable reflection. Various questions can arise depending on your preferences: Is the buyer going to contribute as I see fit? Will the buyer form a partnership of equals with me? Do they want to promote the company’s development or just get everything they can out of it? Will I have to let go of the company completely or can I stay involved? Gröber had high expectations of his future partner: investment and financial expertise, comprehensive specialist and sectoral knowledge, experience within the injection molding sector, understanding of processes in mold-making and automation, and the possibility to retain a stake in the company and remain involved in forming its future.

Track record and trust
Meeting the seller’s expectations is a must, but not enough by itself. “My rock-solid trust in CGS was the most important factor in my decision. I had seen their Buy & Build concept successfully implemented with Schöttli, a similar company in the mold-making sector, and was convinced it would work for us,” says Gröber, explaining his decision to go with CGS. Gröber is very satisfied with his decision. He has found in CGS a partner on equal footing who appreciates his expertise and includes him in business operations. The company
is developing brilliantly. His retrospective recipe for success? “Start the process early on so you can invest time in it. Put together a trusted team of fiduciaries, attorneys, and top managers to rally round your efforts. And the most important part: only sell when you are a hundred percent sure.”

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