Preparing to sell your business : the key steps for a successful transfer

The sale of a business directly impacts your personal wealth. It is therefore essential to :

• Consider selling or keeping assets linked to the company (real estate, vehicles, etc.)

• Assess benefits in kind to reintegrate or not into your personal life

• Anticipate the tax impact : donation, dismemberment, family holding company

Work with a tax lawyer and an accountant to optimize the taxation of the sale.

A reliable business valuation relies on several complementary methods :

• Asset-based method : based on net assets (assets – liabilities)

• Comparative method : benchmarking against similar companies

• Income method : estimating the future ability to generate profit

• Goodwill : valuing intangible elements (brand, customer base, reputation)

Combine multiple approaches to obtain a credible valuation range that is both objective and defensible.

An internal audit is essential to present a healthy and attractive business to potential buyers.

Key areas to analyze :

• Production : capacity, tools, organization

• Sales & marketing : strategy, client portfolio, distribution channels

• Finance : profitability, debt, balance sheets

• Taxation : compliance, audits, current regime

• Administrative & IT systems : invoicing, software, security

• Premises & equipment : owned or leased, investments required

• Human resources : organization chart, social climate, contracts

• Quality/Safety/Environment (QHSE) : regulatory compliance

This global audit will serve as the foundation for creating a presentation file (or Information Memorandum).

Start by informing your employees (a legal obligation under certain conditions). They may themselves be potential buyers.

Then, use different channels :

• Professional networks

• Matching platforms (e.g., Fusacq, Cédants et Repreneurs d’Affaires)

• Specialized intermediaries (M&A firms, accountants, etc.)

Prepare an attractive teaser (an anonymous sheet summarizing the company’s strengths) and a complete Information Memorandum (Info Memo) for serious buyers, after signing a confidentiality agreement.

The time for negotiations has come. You must :

• Anticipate objections

• Justify your price (through valuation, business plan, financial projections)

• Present a reassuring support plan

Set a minimum price below which you will not sell, to keep room for negotiation.

Seller’s credit :
Very common, this mechanism consists of spreading part of the payment over several months or years. It makes the acquisition easier for the buyer while ensuring continuity for you.

After an agreement :

• Signing a sale agreement (protocol)

• Drafting the transfer deed

• Tax filing, legal publication, registration with the trade registry

Also consider the escrow agreement, which protects the seller from creditor claims.

Work with a specialized business transfer firm to secure the transaction.

A transition period is highly recommended (3 to 12 months). It may include :

• Knowledge transfer

• Introduction to teams, partners, and clients

• Support during the start-up phase

Present this plan early in the negotiations to reassure buyers.

Announcing the sale of the business is an integral part of the strategy. Inform :

• Your employees

• Your business partners

• Your key clients

Communicate the news through :

• Your website

• Your social media

• A press release, if needed