The Bpifrance business transfer barometer, published in October 2023, forecast a 5% increase in the number of transfers in 2023 compared with 2022.
For January 2024, a stabilization in the number of transfers is forecast, with a slight growth of 1 to 2%.
Are you thinking of handing over your business to a buyer, and wondering what steps you need to take to make this transition a success?
Here’s what you need to know.
Defining your objectives and preparing the ground for your transfer
Before considering a business handover, the owner needs to clearly define his or her motivations and expectations for the future.
A thorough evaluation of the business will identify its strengths, weaknesses and value.
These key elements will enable you to establish a fair price and attract the right buyers.
Choosing a buyer whose vision and values match those of the company is a guarantee of the company’s future and a good working environment.
By compiling a complete and transparent presentation file, the owner will help the buyer to become familiar with the company and its key points.
In addition, it is important to inform staff of the handover and answer any questions they may have, in order to minimize uncertainties and maximize buy-in.
Preparing the deed of sale before the takeover
Before contemplating a sale, every business owner needs to prepare the handover carefully to ensure a smooth transition. The handover is not simply a financial transaction, but also involves preparation of the Deed of Sale, taxation of the sale and presentation of the business to potential buyers. Professional legal advisors and lawyers specializing in business sales can help you evaluate your goodwill and determine appropriate transfer values based on your company’s significant figures.
Buyer support and relationship management
Once a buyer has been identified, he or she needs to be supported throughout the transfer process.
As a business owner, your role is to pass on the knowledge and skills necessary for the success of the buyer.
You can offer coaching sessions, role-playing and experience-sharing to facilitate the integration process.
Maintaining good relations with the new owner, the company’s employees and other stakeholders will also help to maintain a positive climate and ensure a successful transition.
Emotional management and practical advice
When it comes to transferring or taking over a business, it’s also advisable to enlist the help of business transfer experts and specialized lawyers to manage the legal, financial and tax aspects of the transaction. Good management of the owner’s emotions and those of the employees helps to minimize stress. You can also explore options such as using vendor credit, public authority missions or applying to the court clerk’s office to facilitate the transition process.
By following these steps and surrounding themselves with the right resources, business owners will maximize their chances of successfully transferring their business to a buyer, and ensuring its longevity under the management of the new entrepreneur.
