Europe Middle East & Africa N° 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 transfer of a company. There can be many reasons for the sale and any lack of clarity on the reasons will hinder the study of your file by buyers. Moreover, a patrimonial or even personal diagnosis is an essential prerequisite to the operation, in order to prepare its consequences.
Beware of life’s hazards that force you to rush things. In this field, any haste leads to mistrust on the part of buyers and advisors.

Europe Middle East & Africa N° 2: Never give up your business alone

No confidentiality will be assured if you decide to sell your business by 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 will be able to represent you and play an advisory role in today’s highly technical negotiations. Furthermore, it is preferable that a firm screen the buyers and verify their professional and financial qualities.

Europe Middle East & Africa N° 3: Entrust your file to only one firm

All too often, company managers 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 company. A company is transferred by respecting an extremely rigorous methodology which 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 of buyers can only be carried out by a single firm. Moreover, you will have to choose a firm with an international dimension, which alone can benefit from powerful logistics allowing to communicate on your file at the national, even international level. This is obviously the case of our firm.

Europe Middle East & Africa N° 4: Is family succession the best solution for a successful business transfer?

Of course, the family transmission is the most logical way to transfer the 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 generally better to recover a more attractive sale price by selling to a third party?

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

Europe Middle East & Africa N° 5: Talk to the number 2 in the company

Obviously, the subject of selling one’s company is taboo, especially in the case of a family-owned SME.

In order to succeed in transferring a business, it is imperative that your right-hand man is on board with the project and helps the new boss.
Moreover, even if your age remains a secret, the staff realizes that you are not young anymore and that the problem will arise one day…

Europe Middle East & Africa N° 6: Be careful what you sign

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

Never sign without the approval of a counsel. At any moment, your civil or even criminal responsibility can be engaged and you risk losing several months in an unnecessary litigation.

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

Europe Middle East & Africa No. 7: Privacy is paramount

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

Europe Middle East & Africa N° 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 taxes and after deduction of the guarantee actions…

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

Europe Middle East & Africa N° 9: Preparing for the transition

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

But be careful, don’t forget the financial terms and conditions, otherwise beware of the bad surprise after the transfer.

Europe Middle East & Africa N° 10: After the sale, life goes on

You have sold or transferred your business? Beware, you are changing your status…
You are no longer at the head of a small business, you are now a simple citizen!

Prepare your reconversion, whether it is your retirement or a change of activities.