Business transfer planning
Organizing your business succession is something you must plan in advance. Simply doing so at the last moment can affect the success of the transmission and the sustainability of the company. For example, taxes can have different impacts, so need to have time to rethink the structure, to take the necessary steps, and to take into account wait times.
Depending on the sector, the size of the company or its legal structure, finding a buyer can be particularly complicated.
The seller will have to ask himself questions about the stakes of the transmission, both for him persinonally (price, pension, etc.) and for the company (sustainability of the company, maintenance of jobs and the site of the company).
He will also have to ask about potential buyers who may be family, executives of the company (management buy out) or a competing company (management buy in), third parties (investors, entrepreneurs).
The timing of the transfer is also an important factor (market, good business health) that may influence its value. It will also be decisive in some cases for tax reasons or for other planning or development reasons.
An assessment should also be made as part of the transaction, choosing the most appropriate calculation method for the situation. It might be a good idea to make assessments from time to time in order to be in the market.
It is also important not to forget to pay particular attention to confidentiality in the first stage and in the second stage to take care of communication so that the transition goes smoothly with all stakeholders, including business relationships, such as employees or banks.
Depending on the size of the company and the complexity of the transmission, it is necessary to surround yourself with one to several advisers to ensure that the operation goes optimally.
Indeed, during the transmission, important and often emotionally charged steps during the valuation, negotiation, controls (due diligence) can be a factor of failure. Good communication is important and the intervention of professionals who know how to step back and advise in the absence of conflict is important.
Fiduciary Monachon Sàrl will soon propose solutions on this subject and of course remains available for any assistance on this subject.