There are many different ways to transfer your company. Let’s take a look at all the different ways to find a buyer for your SME.
Transferring your company in an international context is a methodical and legal procedure: you’ve assessed the company’s objective value, conducted a performance diagnosis, and sought potential buyers. Now it’s time to consider the actual structure of the transfer.
The structure largely depends on your buyer. We’ve outlined the three most common scenarios for you.
1. Passing on Your Business to Your Children
If one or more of your children work with you, they might be interested in taking over your enterprise. In many countries, this option presents several fiscal and economic benefits. You can transfer your company in the following ways:
- Gratis: The transfer is considered a donation and is subject to general taxation and transfer duties (-50% if the donor is under 70 years old). However, a deduction is permitted if the recipient commits to retain the shares. If the company’s assets don’t exceed a certain amount, the capital gains are usually tax-exempt.
- For a fee: This type of transfer can assume various forms and financial arrangements. It’s advisable to engage a team of experts for guidance. They can inform you about the possibility of transferring the company to a holding company in the form of an OBO (Owner BuyOut).
2. Transferring Your Business to a Third Party
When contemplating international business transfer, a small or medium-sized enterprise manager may have no alternative but to seek an external buyer. It’s crucial to present prospective buyers with a viable plan for the company’s future. It’s also advisable to engage a team of specialists to guide you through the necessary steps:
- Company preparation and valorization
- Presentation of the company to prospective buyers
- Discussion period with a potential buyer
- Company audit and memorandum of understanding outlining the purchase terms and other contractual guarantees
- Company transfer in the presence of a notary, and filing of the deeds at the commercial court’s clerk’s office and the Trade and Companies Register
- Payment of registration fees
3. Transferring Your Company to Your Employees
If your employees express interest, they can take over the company through several methods. Since they already understand the company’s operations, the transition period is typically smoother. In Europe, typically, the transfer to employees can occur through a donation, but more often, it’s a transfer that enables the owner to enhance the company’s value. This can take the form of:
- Employee Buyouts: Managers pool their resources to acquire the company.
- Leveraged Buyout: The buyers use the company’s assets as collateral to finance the purchase.
In conclusion, the methods of company transfer are numerous and vary based on the countries and profiles of the buyers. Don’t hesitate to contact Actoria, which assists with an average of 50 company transfer, sale, capital opening, or family transmission cases per year through its team of consultants across Europe.
FAQ
What services does Actoria provide?
Actoria specializes in mergers and acquisitions advisory for small and mid-sized businesses. Our services include company sales, succession planning, buy-side and sell-side mandates, business valuation, financial diagnostics, investor sourcing, negotiation support and full transaction execution until closing.
Who does Actoria work with?
We support SME owners, family-business leaders, shareholders, entrepreneurs, private investors, and corporate groups seeking to acquire or divest businesses in Europe and North Africa.
In which countries does Actoria operate?
Actoria has local teams in Switzerland, France, Belgium, Luxembourg, Morocco and Tunisia, and manages cross-border deals across Europe, Africa and the Middle East through an international buyer network.
How many potential buyers are in Actoria’s network?
Our proprietary network includes more than 6,500 qualified industrial buyers, strategic acquirers and financial investors, allowing us to match sellers with high-quality counterparties.
Does Actoria support confidential business sales?
Yes. Confidentiality is fundamental to our process. All discussions, documentation and buyer approaches are handled discreetly to protect the interests of the seller and the business.
What industries does Actoria cover?
We advise companies across multiple sectors, including industrial production, manufacturing, services, IT and digital, healthcare, logistics and distribution, construction, and specialized B2B services.
What is the typical size of businesses Actoria represents?
We primarily advise SMEs with revenues generally ranging from CHF/EUR 2 million to 100 million, depending on jurisdiction and market.
How does Actoria determine the value of a business?
We perform detailed financial and strategic analysis using multiple valuation methods, including discounted cash flows, market multiples, asset-based methods, and sector benchmarking.
How long does a business sale process take?
A standard transaction typically takes 6 to 12 months depending on market conditions, buyer interest, company complexity and diligence requirements.
Why choose Actoria as an M&A advisor?
With over 20 years of experience, a senior advisory team, a structured methodology, and an extensive network of qualified buyers, Actoria delivers independent advice, tailored execution and strong transaction results for SME owners.
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Actoria has swiftly identified the inefficiencies in our company’s processes, proposed optimizations, and implemented them effectively. Furthermore, Actoria has provided outstanding support throughout all stages of our company’s transfer to a group within our industry. This includes preparing our company, identifying potential buyer partners, and negotiating up to the point of the partner’s capital entry. Actoria delivered expert negotiation skills and secured a valuable partner for us.
We were quite anxious to find a solution, as my health was deteriorating rapidly. Actoria’s consultant played a crucial role in the successful completion of my company’s sale. Their involvement was essential in executing this delicate project, as it impacted our daily operations. This project, which was close to my heart and increasingly necessary, was made possible thanks to the decisive momentum provided by Actoria.
First, Actoria conducted a thorough assessment of our company’s strengths and weaknesses, and then suggested incorporating these insights into our management approach to enhance our company’s value. Actoria led this project alongside my entire management team, enabling the involvement of all key personnel, and swiftly implementing a solution that allowed an investor to enter our capital. This was complemented by the inclusion of some of my company’s executives and a bank.
I couldn’t be happier with the result, but I am especially pleased with my decision to work with Actoria. The success of this mission was the direct result of Actoria’s hard work and sophisticated professionalism on my business. From our first meeting through the reasonable preparation process, all phases of the transfer, legal and financial operations were managed by the Actoria team. Their skills were even more evident when the complexities of this transaction were at its peak.
Hiring Actoria made the difference to achieve my original goal and move on to my next professional challenge. Selling a company like AMR in this market has not been an easy task. Actoria has demonstrated perseverance in identifying good buyers with knowledge of my industry in order to continue the development of my business, and has provided professional advice throughout the process.
The company’s sales process was a lengthy and challenging journey. The professional support from Actoria made this endeavor much more manageable. I would like to extend special thanks to the consultants from Switzerland and France for their highly effective collaboration. Your consultants proposed creative solutions during the negotiations, which effectively overcame significant obstacles in order to finalize the agreement. Their experience, knowledge, and professionalism played a crucial role in the success of this transaction.
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