WHY IS IT SAID THAT IT IS MANDATORY TO PREPARE A BUSINESS TRANSFER?

Preparing for the sale of a business is essential to remove obstacles to the sale of an SME, or to maximise its value. Whatever the size or activity, good preparation of the transfer is an excellent return on investment.

The main points to be addressed in detail when preparing for a business sale are listed below.

– Is there a multi-year business plan?
– Do the accounts for the last three years show a favourable trend?
– Can any accidents in the course of the business be explained?
– Are the shareholder current accounts repaid?
– How will your biggest customer react?
– Are there still any guarantees to be raised from the company director?
– Are the managers in favour of the chosen solution?
– Is there a risk that old business will resurface after the sale of your business?
– Won’t the accounting decisions taken to pay less tax suggest that your business is not profitable enough for a buyer?
– Are there any tax receivables that can be carried forward?
– When was the last tax audit?
– Do your family members employed in the business have jobs and salaries that correspond to the reality of the market?

THE REASON FOR THE PROJECT :

– Motivations- Financial situation
– Constraints endogenous and exogenous to the company
– Projects pos operation.

EXAMINE THE DIFFERENT OPTIONS:

– Transfer to a family member?
– Transfer of the business to a member of staff?
– Transfer of the business to a third party?
– Is it possible to consider transferring the business to a known third party (customer, supplier, partner, etc.)?
– If the third party is unknown, can it be a natural person and/or a legal entity?

PREPARE THE COMPANY :

– How is its market evolving and what is its strategy to exploit it?
– What is its development potential?
– Does it have an efficient operational capacity?
– Does it have a debt capacity?
– Is the legal structure being sold optimal?
– Who owns the property?

OPTIMISE THE PRESENTATION :

Without going as far as window dressing, it is necessary to prepare for the sale of an SME by presenting the company in the best possible light by first resolving all the problems likely to constitute an obstacle to the transfer or sale of your company.

THE BUSINESS OWNER SHOULD ALSO CARRY OUT A PERSONAL ASSESSMENT EXAMINING

– Their motivations
– His/her financial situation
– His/her financial constraints
– Their medium and long-term strategy