It’s not always easy to admit that the time has come to transfer your business. Here are several situations to anticipate or at least recognize.

Recognize that it’s time to transfer your business
The best time to transfer a business is difficult to find. It is the small point of convergence between a fiscally and financially interesting exit. In short, when you pay the least amount of taxes and sell at the best price. To sell your company in the best conditions, it is essential to take a step back from your situation. Our expert advice.
Identify the right time to transfer your business
Anticipating the day when the business will sell at the best price is delicate. If there is a part of chance and opportunity, several parameters must be analyzed and indicate that, perhaps, it is the ideal moment to transmit its company:
- The value of your company has significantly increased: After a phase of important growth, your company has a “liquid” value only if you sell. Moreover, managing a company involves risks, and the more you grow, the more risks you run… Indeed, it is essential to sell before the crash, the loss of a contract or the arrival of a new competitor. Because as soon as the company’s balance sheet is less than stellar, your business loses its value.
- You want to take advantage of the changes in the law of succession, which make family transmission easier: A good reason to transmit your company is of course the desire to pass the baton to your children. Today, the Dutreil pact relaxes the conditions necessary to benefit from a 75% allowance on inheritance tax.
Read also: With the Dutreil Pact, improvements but no simplifications
- Your partners want to sell: you have the choice of buying back their shares and becoming 100% owner of the business or selling it to a third party and starting over. This second option is more prudent because you will get an equal, proportional share of the sale.
- You no longer have the energy, skills or resources to grow the business: A business must continually grow and, as an owner, there will come a time when you feel you can no longer do so. If you feel that the company is at a strategic turning point, that it needs to modernize to sustain its business, but you don’t feel capable of doing so, you should consider reselling. Prospect for buyers who have the experience and knowledge you lack.
- You have other opportunities, other desires: And of course, you need to finance these new projects. Conversely, retirement is also an excellent reason to transfer your business. If you can boast of a fulfilling professional career and a personal income that keeps you out of trouble, there is definitely nothing holding you back at the head of your business.
However, one cannot deny a sentimental, psychological implication. Few entrepreneurs launch a project thinking about the moment when they will have to part with it. But remember: anticipating the right day to pass on your business is also about securing your future.
And prepare its transmission
You have decided to sell your company? Everything will not be settled overnight. If some experts estimate that 5 to 10 years are necessary before selling a company, you will certainly not be able to sell in less than 1 to 2 years. This period of time is dedicated to identify the “key” positions and skills in the company’s operation, in order to understand the aspects to be valued and the weaknesses to be corrected.
Read also: Entrepreneurs do not prepare their transmission
You think about the future of your company? Call on Actoria consultants, specialists in business transfer in Europe for more than 25 years.








