Our advice on transfers

Tip 1: Preparation, preparation and more preparation

Before moving on to the operational phase, it is essential to reflect on the motivations and objectives of the operation in order to make a success of the business transfer. There may be many reasons for the sale, and any lack of clarity about the reasons for the sale will make it difficult for buyers to consider your case. In addition, a financial or even personal diagnosis is an essential prerequisite to the operation, in order to prepare for its consequences.
Beware of life’s hazards that force you to rush things. In this area, any haste leads to mistrust on the part of buyers and advisors.

Tip 2: Never sell your business alone

No confidentiality will be guaranteed if you decide to sell your business yourself, especially by placing an ad in the press. Furthermore, never be in the front line with a buyer and his advisors. Only a seller’s advisor can represent you and play an advisory role in today’s highly technical negotiations. Furthermore, it is preferable for a firm to screen the buyers and check their professional and financial qualities.

Tip No. 3: Only entrust your file to one service provider

All too often, business owners make the mistake of referring to the real estate market and initially consider that they need to multiply the number of firms mandated to sell their business. A company is transferred using an extremely rigorous methodology that has nothing to do with the sale of a building, in particular by direct and indirect approach on the basis of well-defined specifications. The direct approach to buyers can only be carried out by a single firm. In addition, you should choose a firm with an international dimension, which alone can benefit from powerful logistics enabling it to communicate on your case at national or even international level. This is obviously the case with our firm.

Tip No. 4: Is family succession the best solution for the successful transfer of a business?

Of course, family succession is the most logical way to transfer a business when it has been in the family for several generations. Are you sure that this is the right solution? That your children are capable of taking over? That this project is part of their aspirations?

Isn’t it better to get a better sale price by selling to a third party?

Beware, a donation is not always the best way to transfer the business. Other solutions exist that are more advantageous for the transferor.

Tip 5: Talk to the second in command of the company

Obviously, the subject of transferring one’s business is taboo, especially in the case of a family SME.

In order to succeed in selling a business, it is imperative that your right-hand man or woman is on board and helps the new boss.
Moreover, even if your age remains a secret, the staff will realise that you are no longer young and that the problem will arise sooner or later…

Tip 6: Be careful what you sign

Be careful before accepting a letter of intent, a discussion protocol, an exclusivity agreement, a promise, a sales contract, a guarantee of liability, etc.

Never sign without the endorsement of an advisor. At any time, your civil or even criminal liability may be incurred and you risk losing several months in unnecessary litigation.

At your request, we can provide you with tax experts and lawyers, who can give you all the necessary advice on the possible risks of the operation.

Tip 7: Confidentiality is essential

Imagine that a competitor, a supplier or an employee knows about your intention to sell. This is a risk you cannot afford to take.
Moreover, as long as the price has not been paid, the transaction has not been completed. Beware of premature announcements.
Any transaction that is made public and not completed may cast doubt on the quality of your SME, and make any subsequent transaction more difficult.

Tip 8: Price is not everything

Of course you want to sell on the best terms. However, don’t forget that what counts is the amount you will receive net after tax and after deduction of the guarantee actions…

In addition, the guarantees requested by buyers are generally proportional to your financial requirements.

Tip 9: Prepare for the transition

Most buyers ask you to be present for a period of time in the company to ensure the transition in management.
In order to make a successful transfer of the business, the transition is important to secure employees, managers, customers and suppliers.

But don’t forget the financial arrangements, otherwise you may be in for a nasty surprise after the sale.

Tip 10: After the sale, life goes on

Have you sold or transferred your business? Be careful, you are changing status…
You are no longer at the head of an SME, you are back to being an ordinary person!

Prepare for your transition, whether you are retiring or changing activities.