This is a recurring question for which there is no magic answer. Our advice on how to successfully transfer your business
How to successfully transfer a company? That is to say, how to perpetuate its activity, its attractiveness and its jobs? And how to anticipate its evolution in the months, years, decades to come? The transfer process is divided into several stages. Each of them must be carefully followed and carried out to ensure the success of the final operation.
How to successfully transfer a business: 5 key periods
- Prepare yourself and the company for the transfer
How to make a success of your business transfer? By anticipating all the questions and difficulties inherent to the project. The transferor must first start a personal reflection. They must ask themselves what their motivations and objectives are for the operation. He must also make an assessment of the company, several diagnoses on its financial health and draw the necessary conclusions. Or perhaps to take strategic decisions to increase the value of the business.
- Evaluate the company
The next point is naturally the estimation of the company’s value. This is a delicate exercise, which should be entrusted to professionals. A company is indeed valued on many technical and complementary aspects:
- net assets
- comparison with competitors and the market
In all cases, it is essential to keep in mind that the sale price differs greatly from the net price received after taxes by the seller.
- Putting the company up for sale
Until now, the seller has worked in the shadows, in complete confidentiality. When the company is ready, he can act. He can publish his offer of transmission. The timing is crucial. The functioning and the life cycle of the company can influence the best moment to sell. It also means that the market is ready: healthy, even growing.
- Find a buyer
How to successfully transfer a business is largely determined by the choice of a buyer. Many options exist. First, internally. Talk to your family if it is a family business. Think also of your collaborators as well as your employees, for the takeover of the company in the form of SCOP. If this is not conclusive, then do your research outside the company. This can be a contact you know – a competitor, supplier or customer – or a completely unknown person – an investor or group of investors, with whom you will then start the transfer.
- Negotiate and conclude the transfer
There are many aspects to consider regarding the mode of transmission. The buyer will have questions and doubts. You will have to prove your good faith and justify the price you are asking. He can negotiate the sale price but also the payment period, the possibilities of tax optimization, the guarantees, the maintenance of certain contracts, etc. The after sale is also a point to discuss: how will the transmission of knowledge be organized and does the buyer expect your presence in the offices during the transition phase?
How to succeed in the transfer of a company? Ask Actoria France, a team of professionals specialized in the transfer of companies and dedicated to your project.