The negotiation of a business sale is the period between the moment a buyer declares their interest and the moment the final contract is signed and the price is paid. This period is crucial and typically involves extensive discussions between the buyer and seller on the price, terms, and conditions of the sale.
The negotiation process for transferring a business can involve several steps, including:
- Requesting additional documents not included in the file
- Asking questions
- Discussing the price
- Talking about the conditions (payment deadline, tax constraints, guarantees, maintenance of certain contracts, etc.)
- Reviewing and discussing the documents that need to be signed (protocols, sales contracts, guarantee of liability, etc.)
- Discussing the after-sale phase (maintaining the seller as a shareholder, as a consultant, etc.)
- Expressing a desire to speak with managers
- Expressing a desire to meet with customers.
For a large SME or a foreign buyer, the negotiation period for transferring a business can be relatively long, spanning several months. Therefore, it is crucial for the transferor to establish a deadline for completing the business transfer operation in a discussion protocol.
Selling or transferring a business is inherently risky for both the buyer and the seller. This type of operation can be particularly challenging for those without practical experience in this field who want to protect themselves against any risk.
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