Management contract to sell your business

At Actoria, a management contract is set up with the manager who wishes to sell his company in a particular form: partnership, merger, MBO, etc. Explanations.

All about the management contract

In the case of a simple transaction, Actoria sets up a mandate with the seller. It sets a quantitative objective over time and allows him to have all the necessary means to reach this objective.
A management contract is preferred for more complex transactions. Indeed, it takes into account all situations. A sort of assistance contract for the transfer of a company, it includes a tailor-made set of specifications. Made at the beginning of the mission, it is likely to evolve over time.

What are the advantages of the management contract?

• The client can give the consultant a series of instructions to follow. He/she pilots the operations.
• The latter is also required to send regular reports of his interventions.
• The client has full ownership of the various documents, studies and reports provided to him. The consultant is bound by the strictest confidentiality.

What does the Actoria management contract contain?

The management contract is agreed and accepted for a period of 1 year. It covers a complete service:

1. Search and selection of the buyer or partner

This involves identifying the profile of the buyer/partner and the approach strategies. Actoria’s expert undertakes to actively seek and select a buyer or partner while respecting complete confidentiality.
Read also: 6 tips to find the best buyer for your company

2. First talks

The consultant accompanies the client with a complete service. He prepares him for the partner’s questions, during audits and due diligence. He checks the documents submitted by the buyers, in particular the letter of intent and the confidentiality agreement. He checks the financial capacities of the partner. He represents the interests of the seller in the definition of the legal and financial arrangements for the transfer.

3. Negotiation

The consultant accompanies the client throughout the negotiation process. He prepares the negotiation scenarios and evaluates the interest of the potential buyers/partners. He verifies that the skills of the buyers/partners match those of the target.
He is also present during the discussions concerning the valuation of the company and the determination of the sale price. Finally, he accompanies the client in the management of possible crises.

Read also: How to set the right price for a company?

4. Contractualization

The Actoria expert assists the client in the negotiation of the agreement in principle. With or without the presence of his lawyer, he formalizes the conditions agreed upon during the negotiations. He ensures that the “due diligence” or “data room” operations are carried out correctly. He checks the financing and the terms of payment and participates in the legal and financial arrangements. He intervenes in the setting up of the final legal acts by ensuring the security of the payment conditions. He will advise the client on the conditions of collaboration with the buyer during the transition period.

5. Consequences

The consultant indicates to the client the consequences of the transfer, notably in terms of professional and personal taxation for the manager. He can propose solutions for optimizing the company’s assets.
You are setting up a particular business transfer? Contact Actoria to benefit from the exclusive and extensive support of the management contract.