
The sale of a franchise or branch network is often a much more complex operation than the sale of a commercial or industrial company, and even more so when selling franchisees.
In order to successfully sell a network, a very serious preparation of the operation is essential.
PREPARATION FOR THE TRANSFER OF A FRANCHISE NETWORK
This preparation should include the following points :
- Accounting preparation of the company or companies that own the network
- Preparation of the communication to the members of the network
- Legal preparation of the franchise contracts, which must include the authorisation to transfer the network
- Preparation of the strategic plan for the next 2 to 3 years
- Optimisation and securing of real estate properties or relationships
- Financial appraisal of the network in order to determine the value of the network
- Financial diagnosis of the network in order to highlight the economic performance of the network
- Drafting of a very complete presentation file (possibly translated into several languages) which will be given to potential buyers and/or investors.
Each of the above-mentioned points of preparation must be addressed in a rigorous manner.
Sloppy preparation, or worse, a lack of preparation, is often the cause of failure when it comes to selling a franchise network.
All too often, the presentation files that transcribe the main points of the preparation do not meet the expectations of buyers and investors. The result is a waste of time for everyone.
In particular, the questions of accounting preparation and network valuation are delicate. They often require accounting adjustments to identify, for example, the investments made in development in order to highlight the true profitability of the company or companies holding the network.
Similarly, the valuation approach will be quite different for a branch operator, who may highlight the ownership of business assets, which are all elements of asset valuation.
Similarly, the question of real estate ownership can have a strong impact on the value of the network, depending on whether or not it is controlled directly or indirectly by the company that carries the network.
The franchisor, on the other hand, is a creditor of obligations on the franchisees linked to its network under the terms of franchise agreements. The valuation approach will therefore be different in this case.
The value of the network will be based on the value of the brand, the know-how, the quality of the products or services marketed, but also on the quality of the franchise agreements: exclusivity, renewal conditions, financial conditions, quality control, transfer conditions, etc…
IDENTIFYING BUYERS/INVESTORS
This phase is as delicate as the preparation phase for several reasons:
- It is inconceivable for a franchisor or branch to communicate internally within its network about its transfer project.
- It is not conceivable for a franchisor or branch to communicate to competitors about its transfer project.
- It is inconceivable that the network’s customers would be informed of the transfer project.
- The financial stakes are such that few buyers are eligible to take over a network.
For all these reasons, Actoria Conseil has set up a specific process to identify buyers/investors of a high financial level while respecting a perfect confidentiality.
International operations are particularly favoured and Actoria Conseil’s international logistics enable it, for example, to close all communication on the project in one or several European countries.
For several years, Actoria Conseil has developed a strong expertise in the total or partial sale (opening of capital) of networks and can accompany you from A to Z on all the issues involved in the sale of a franchise network, whether it is located in one or several European countries.
The group in short :
Every year More than 30 successfull transactions with 20 Senior Consultants and Partners On companies with 5 to 100 employees With a turnover of 1 to 100 Million
We are located in many countries in Europe and Africa to provide access to foreign buyers/investors:
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Actoria has allowed me to quickly diagnose the dysfunctions in the processes of our company, to offer optimizations and to implement them. Actoria has also successfully supported us in all phases of our company’s transfer to a group in our sector: preparation of my company, identification of buyer partners, negotiation up to the entry of the partner’s capital. Actoria brought us negotiation expertise and found us a good partner.
We were relatively anxious to find a solution because my health was deteriorating rapidly. Actoria’s consultant allowed me to successfully carry out my company’s sale. Its action has been crucial to carry out this delicate project because it involved all of our day-to-day activities. This project was close to my heart and was becoming increasingly necessary. The impulse given by Actoria was decisive to make it happen.
First, Actoria made an effective diagnosis of the strengths and weaknesses of our company and then proposed to take them into account in our management in order to increase the value of our company. Actoria led this project with my entire management team which made it possible to involve all the operatives and to be able to quickly implement a solution to enter the capital of an investor supplemented by the entry of certain executives of my company as well as 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 has been a very long and difficult journey. The professional support of Actoria made this effort much easier. I would especially like to thank the consultants from Switzerland and France for their very effective collaboration. Your consultants proposed creative solutions during the negotiations to effectively overcome significant obstacles in order to conclude the agreement. Their experience, knowledge and professionalism contributed to the success of this transaction.
The group in short :
Every year More than 30 successfull transactions with 20 Senior Consultants and Partners On companies with 5 to 100 employees With a turnover of 1 to 100 Million
We are located in many countries in Europe and Africa to provide access to foreign buyers/investors:
The question of selling a business in France arises sooner or later. How to find the right buyer in Europe ? How to successfully transfer my business in Europe ? When you want to hand the hand over to a successor, buyer, buyer or investor, the terms used are various: delivery company Europe, sale company france, sale company Europe, sale company Europe, sale small business in Europe. Whatever the terms used for the sale of your company in Europe, you can put your company on a list of companies for sale in Europe, a business exchange, or seek advice from a fusacq, a specialist in business transfer in Europe. With him you can think about the best buyer: family,employee, investment fund, external buyer. Sometimes it can offer you other solutions such as a getting closer to a company, a merging or establishing an alliance with another european company.
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