Publications

What Are Heads of Terms When Selling an EU Business?

Gabriel Hansen, Associate, MDN Group

Selling a business in the European Union involves navigating various legal, financial, and strategic considerations. Whether you have nurtured your company from its inception or acquired it as part of a broader investment portfolio, the sale process demands careful planning and a thorough understanding of key documents. 

One such document, commonly referred to as Heads of Terms, can be instrumental in outlining major points of agreement during the initial phase of negotiations. Below, we explore the purpose of Heads of Terms, discuss their typical components, and highlight how they can foster a smooth, transparent sale process for EU-based transactions.

Responding to Unexpected Acquisition Offers

Peter Hubert, Partner, MDN Group

In today’s European business markets, successful privately held companies are receiving an increasing number of unsolicited acquisition offers.  Whether from private equity firms or strategic buyers, these unexpected proposals require careful consideration and a structured approach to evaluation. 

This comprehensive guide will help business owners navigate this complex situation while protecting interests and maximising opportunities.

Navigating the Path to Accurate Business Valuation

Peter Hubert, Partner, MDN Group

When owners of small and medium-sized enterprises (SMEs) across the European Union consider selling, one of their first questions is often: “How much is my business worth?” 

Determining a company’s value can feel daunting since valuations blend art and science, with specialists devoting entire careers to the subject. Countless books detail intricate methods to measure worth, but for a concise overview, this article outlines three foundational pillars of the valuation process. 

By examining theoretical valuation models, key business drivers, and buyer motivations, you can chart a more assured path toward an optimal sale.

Fostering Financial Resilience: Key Strategies for EU Enterprises

Robert Nilsen, Associate, MDN Group

Economic downturns are an inevitable part of running a business. Yet research by Boston Consulting Group indicates that only a tiny fraction of companies (around 14%) managed to increase sales growth and profit margins during the four global recessions since 1985. 

Many businesses focus on defensive, short-term moves, often undermining long-term stability. Below, we examine four essential ways to build financial resilience and secure lasting success in Europe’s competitive marketplace.

Strategic Success in M&A: Key Pitfalls EU Businesses Must Avoid

Gabriel Hansen, Associate, MDN Group

The European M&A landscape presents unique opportunities for growth and expansion, yet the path to successful deals remains challenging. 

With research indicating that up to 90% of mergers and acquisitions fail to meet their objectives, understanding the critical factors that can derail these complex transactions is essential for European business leaders.