FAQ

Entrusting the sale of your company to a specialized firm such as Evaliance Capital is a strategic decision that maximizes your chances of success. Here’s why professional support is essential to enhance, secure, and successfully transfer your business under the best possible conditions.

• Defining a tailored exit strategy

Every sale is unique. Evaliance Capital helps you clarify your financial, personal, and strategic goals to build a customized plan : full or partial sale, family succession, or sale to a third party. This personalized approach anticipates legal and tax implications while aligning your interests with those of the buyer.

• Accurate business valuation

A reliable valuation is critical for setting a realistic and attractive sale price. Evaliance Capital applies proven methods such as comparables, earnings multiples, and discounted cash flows (DCF) to determine a relevant valuation range. This expertise allows you to highlight your company’s strengths and justify its value to potential buyers.

• Identifying the right buyer

Finding a serious and capable buyer is essential to ensuring business continuity. With its extensive network and deep market knowledge, Evaliance Capital identifies and qualifies prospective buyers that match your criteria. This rigorous screening process boosts the success rate and ensures a smooth handover.

• Negotiating and securing the transaction

Selling a business involves numerous complex steps : negotiating terms, drafting contracts, due diligence, and more. Evaliance Capital supports you throughout the entire process protecting your interests and ensuring legal compliance. Their expert guidance reduces risk and ensures a seamless transition.

• Staying focused on your business

Even during a sale, running your company remains your priority. By entrusting the technical and administrative aspects to Evaliance Capital, you can continue to manage your operations effectively while preparing the transfer under optimal conditions.

In summary, working with a specialized firm like Evaliance Capital gives you valuable expertise, saves considerable time, and provides the peace of mind necessary to successfully navigate this key milestone in your entrepreneurial journey.

Selling a business is a strategic step that requires thorough preparation. Among the essential steps, the business diagnostic plays a central role. It helps identify the company’s strengths and weaknesses, anticipate potential risks, and enhance the company’s value for a successful transfer.

What is a business diagnostic  ?

A business diagnostic is a comprehensive analysis of all key components of the company :

• Strategic diagnostic : evaluation of the company’s market position, competition, and growth outlook.
• Financial diagnostic : analysis of economic performance, profitability, solvency, and cash-flow.
• Legal diagnostic : review of contracts, legal obligations, ongoing disputes, and legal risks.
• Human resources diagnostic : assessment of organizational structure, key skills, company culture, and reliance on the owner.
• Operational diagnostic : review of internal processes, IT systems, suppliers, and business partners.

This comprehensive assessment provides an objective overview of the company and facilitates decision-making and the implementation of corrective actions prior to the sale.

Objectives of a business diagnostic

Conducting a business assessment prior to a sale serves several purposes :

1. Identify areas for improvement : detect weaknesses and implement corrective measures to enhance the value of the business.
2. Prepare for valuation : provide a solid basis for estimating the value of the business, taking into account its specific characteristics and potential.
3. Anticipate buyers’ questions : be prepared to respond transparently and articulately to questions from potential buyers.
4. Facilitate negotiations : have factual information to justify the sale price and terms of the transaction.
5. Secure the transaction : reduce the risk of post-sale disputes by identifying potential legal or financial issues in advance.

How to conduct a business diagnostic ?

A diagnostic should be carried out methodically and objectively. It is highly recommended to work with a specialized M&A advisory firm like Evaliance Capital, which has the necessary expertise to :

• Gather and analyze relevant data.
• Apply proven analysis tools (SWOT, PESTEL, etc.).
• Benchmark the company’s performance against industry standards.
• Provide concrete recommendations to improve company value.

A thorough and well-executed diagnostic is a key asset in successfully selling your business under optimal conditions.

Evaliance Capital supports you throughout the diagnostic process, bringing its expertise and know-how to optimize your company’s value and secure your sale project.

Selling a business is a strategic milestone in any entrepreneur’s journey. Whether you’re planning for retirement, launching a new project, or responding to an acquisition offer, this decision should be carefully thought out and well-prepared. Evaliance Capital, a firm specialized in mergers & acquisitions (M&A), helps you navigate this transition with confidence.

Why sell your business ?

There are several reasons why a business owner might choose to sell :

• Retirement : to ensure a smooth handover and the long-term continuity of the business.
• Career change : to explore new professional opportunities or ventures.
• Acquisition offer : to take advantage of a strong proposal from a potential buyer.

Clearly defining your personal and professional objectives is essential to shape your sale strategy.

When is the right time to sell ?

There is no “perfect” time to sell a business, but some periods are more favorable :

• Growth phase : typically 3 to 5 years after founding, when the company is experiencing strong expansion.
• Maturity phase : usually between 8 and 12 years, when the business is stable and profitable.
• Before a downturn : to anticipate declining performance and maximize valuation.

It’s recommended to begin preparing for a sale 18 to 24 months in advance to optimize conditions and avoid pressure.

How to prepare for the sale of your business ?

A successful sale requires rigorous preparation. Key steps include :

• Business diagnostic : assess strengths and weaknesses to identify areas for improvement.
• Valuation : estimate the company’s worth using the most appropriate methods.
• Information memorandum : compile a detailed presentation for potential buyers.
• Buyer search : identify and qualify serious and financially capable candidates.
• Negotiation : align on key terms and conditions to reach a mutually beneficial agreement.

Evaliance Capital supports you through each of these stages, ensuring your transaction is secure and that the conditions are optimized.

Why choose Evaliance Capital ?

As a specialist in business sales and acquisitions, Evaliance Capital offers you :

• Recognized expertise : over 35 years of experience in financial management and capital markets.
• A qualified network : access to a broad range of potential buyers.
• Tailored support : advice fully adapted to your situation and objectives.
• A confidential approach : complete discretion throughout the process.

By choosing Evaliance Capital, you gain a trusted partner committed to ensuring the successful sale of your business under the best possible conditions.

Success fees are a key component of the remuneration structure for M&A advisory firms specializing in business transfers. These fees are typically expressed as a percentage of the enterprise value—that is, the equity value adjusted for net financial debt and are only payable upon the successful completion of the transaction. This model ensures that the advisor’s interests are aligned with those of the seller.

Fee structure

M&A advisory fees are typically composed of two main components :

• Retainer Fees (Fixed Fees) : These initial fees, usually representing 10% to 20% of the total remuneration, are payable upon signing the engagement letter. They cover the preparatory work, such as business valuation, preparation of the information memorandum, and identification of potential buyers. For mid-sized transactions, a typical retainer fee might be around €20,000.
• Success Fees (Variable Fees) : These are calculated as a percentage of the final transaction price, and are only due if the deal is successfully closed. They are often structured as tiered or incentive-based, depending on transaction size, to encourage the advisor to maximize value for the seller.

Examples of success fee scales !

Success fees vary based on the size and complexity of the transaction. Here are some illustrative examples :

• For a €2 million deal : 5% success fee, i.e. €100,000.
• For a €5 million deal : 3% success fee, i.e. €150,000.
• For a €15 million deal : 1.5% success fee, i.e. €225,000.

These figures are indicative and may be adjusted depending on the specifics of the deal and the outcome of negotiations between the seller and the advisor.

Optimizing the fee structure

It is possible to negotiate the fee structure to further align the advisor’s incentives with the seller’s objectives. For example, ratchet clauses may be introduced to increase the success fee percentage if the sale price exceeds certain thresholds motivating the advisor to secure the highest possible valuation.

Tax considerations

Fees related to preparatory work (e.g. valuation, financial audit) are often paid by the company and are generally tax-deductible. Success fees, however, are typically borne by the seller personally and are not tax-deductible.

In summary, success fees are a critical component of the M&A advisory model. Structured properly, they align interests, reward performance, and provide transparency around the cost of the transaction. Understanding and negotiating these fees is essential for optimizing the terms of your business sale.

Taxation on business transfers : what you need to know !

For the Seller : Capital Gains Tax

The capital gain made on the sale of a business is subject to taxation. In France, it is generally taxed under the flat tax regime (Prélèvement Forfaitaire Unique, PFU). However, if the seller opts for the progressive income tax scale, tax deductions for holding periods may apply, depending on how long the shares have been held.

For the Buyer : Registration Duties

Registration duties vary based on the nature of the transfer :

• Social shares (e.g., SARL, SCI)
• Securities or stocks (e.g., SAS, SA)
• Business assets

Professional fees : an important budget item

Several professionals are involved in a business transfer process :

• M&A advisor : generally remunerated based on a success fee (percentage of the sale price).
• Lawyer : hourly fees for drafting and reviewing legal documents.
• Chartered accountant : hourly or project-based billing for financial due diligence and tax support.
• Notary: fees depend on the type and complexity of the legal act involved.

In most cases, these fees are payable at the closing stage, once the transaction is finalized.

How to optimize the cost of a business sale ?

To keep transaction costs under control, we recommend :

• Planning ahead: early preparation allows you to anticipate and optimize the tax impact of the sale.
• Working with experienced professionals: their guidance ensures a secure transaction and compliance with legal and financial regulations.

Evaliance Capital, a firm specialized in business sales and acquisitions (M&A), supports you throughout the process to ensure the success of your transaction both financially and strategically.

Financing an external growth operation such as a business acquisition requires rigorous planning and a well-balanced mix of personal funds and external financing. Evaliance Capital, a specialist M&A advisory firm, helps you build a tailored financing plan to secure your acquisition successfully.

1. Personal contribution : A sign of commitment

A personal contribution typically ranging from 20% to 30% of the acquisition price is often required by lenders. This investment demonstrates your commitment and reassures financial institutions of your motivation and ability to lead the project effectively.

2. Bank loans : The primary financing lever

Professional bank loans are the main tool used to finance a business acquisition. They can cover up to 70% of the acquisition price. Repayment terms usually range from 5 to 7 years, depending on the project’s robustness and the quality of your business plan.

3. Honor loans : Unsecured support

Honor loans offered by networks such as Initiative France, Réseau Entreprendre, or ADIE are interest-free loans granted without personal guarantees. These loans strengthen your equity base and facilitate access to complementary financing.

4. Public aid : Support mechanisms to explore

Several public grants and incentives are available to support business acquisition projects, particularly at the regional or local level. These may take the form of subsidies, guarantees, or reduced-rate loans.

5. Fundraising : Bringing in private investors

Raising funds from private investors, such as business angels or investment funds, can complement the financing of your project. This option is particularly relevant for projects with high growth potential or requiring significant capital.

Evaliance capital : Your partner for financing strategy

Evaliance Capital supports you in building a tailored financing plan, identifying the right sources of funding and helping you mobilize the necessary resources. With our deep expertise in M&A and thorough knowledge of financing mechanisms, we ensure a successful and secure acquisition process.

Selling your business at the best possible price is a strategic operation that requires careful preparation and professional guidance. Evaliance Capital, a firm specialized in business sales and acquisitions (M&A), guides you through the key steps to optimize your company’s value and successfully complete your sale.

Define your sale objectives

Before starting the process, it’s essential to clarify your motivations and goals :

• Retirement : Are you aiming for a full or partial sale ?
• Career change : Are you selling to fund a new project ?
• Market opportunity : Are you taking advantage of favorable sector valuations ?

This strategic reflection will help determine the most suitable sale method : share deal, asset deal, or contribution-sale structure.

Accurately value your business

Valuation is a key step in setting a realistic and attractive selling price. Several methods may be used :

• Comparable transactions : analyzing recent deals involving similar businesses.
• Multiples method : applying financial multiples (e.g. EBITDA, net income) to key indicators.
• Discounted Cash-Flow (DCF) : estimating and discounting future cash flows.
• Asset-based approach : valuing the company based on its net assets.

A precise valuation requires an in-depth review of your financials, market positioning, and growth outlook.

Identify the ideal buyer

Finding a serious and competent buyer is essential to ensure the sustainability of your business post-sale. Options may include :

• Internal buyers : employees or family members.
• External buyers : competitors, strategic investors, or private equity funds.
• Individual buyers : entrepreneurs seeking to acquire a business.

Evaliance Capital leverages its extensive network of potential buyers to help you identify and select the candidate best aligned with your sale goals.

Secure the transaction with professional support

Selling a business involves multiple legal, tax, and administrative steps :

• Drafting the sale and purchase agreement.
• Negotiatingterms and conditions.
• Managing capital gains tax
• Communicating with stakeholders and coordinating information flow.

By working with a specialized firm like Evaliance Capital, you benefit from tailored support and a secure, structured sale process from start to finish.

Finding the ideal buyer is a critical step to ensure the continuity of your company and optimize the terms of your exit. Evaliance Capital, a firm specialized in business sales and acquisitions (M&A), supports you through this strategic process.

Defining the ideal buyer profile

Before launching the search, it is essential to define the key characteristics of your ideal buyer :

• Technical and managerial skills : the buyer should have the ability to lead and grow the company.
• Industry experience : in-depth knowledge of your sector makes it easier to take over and ensure operational continuity.
• Financial capacity : the candidate must have the necessary resources to fund the acquisition and support future development.

This reflection enables you to target candidates effectively and tailor your outreach strategy.

Identifying and approaching potential buyers

Several channels can be used to find and connect with potential acquirers :

• Buyer databases : consult curated profiles of acquisition-ready individuals or companies.
• Professional networks : tap into your ecosystem (suppliers, clients, partners) for interested prospects.
• Direct outreach : identify and approach companies that could have a strategic interest in your business.
• M&A advisors : work with transaction experts like Evaliance Capitalto benefit from their network and expertise in identifying and vetting qualified buyers.

It’s essential to manage confidentiality throughout the process, especially by signing Non-Disclosure Agreements (NDAs) before sharing sensitive business information.

Evaliance Capital, your partner for a successful sale

Evaliance Capital supports you at every stage of your business transfer :

• Defining the ideal buyer profile : based on your goals and criteria.
• Sourcing and qualifying candidates : identifying and evaluating their fit with your company.
• Negotiating and structuring the transaction : supporting discussions and drafting the deal structure.
• Securing the deal : overseeing legal and financial aspects to ensure a smooth and safe transaction.

With extensive experience and a solid professional network, Evaliance Capital maximizes your chances of finding a buyer who will secure the continuity and future growth of your business.

In summary, finding the right buyer requires detailed preparation, a targeted search strategy, and expert support. Evaliance Capital is by your side every step of the way to guide your efforts and ensure the success of your sale project.

Selling a business is a structured process that typically takes between 12 and 36 months. The duration depends on the complexity of the company, the level of preparation, and prevailing market conditions. In general, the M&A industry estimates an average of 18 to 24 months, even under favorable conditions.

Evaliance Capital guides sellers through every step of the process to optimize timing and secure the transaction. Here is an overview of the main phases :

1. Initial preparation (6 to 24 months)

Before putting a business on the market, it’s essential to anticipate several key points :

• Financial and legal audit :assess the company’s financial health and compliance.
• Valuation :determine fair market value using appropriate methods.
• Deal structuring :prepare a detailed presentation (Information Memorandum) for potential buyers.

Evaliance Capital recommends beginning this phase well in advance to maximize value and ensure a smooth transaction.

2. Buyer search and selection (approx. 3 months)

Finding a suitable buyer takes time. This phase includes :

• Publishing the sale announcement.
• Reaching out to targeted potential buyers.
• Qualifying candidates (financial capacity, motivation, and fit).

With Evaliance Capital’s network and buyer screening process, this step is accelerated and better targeted.

3. Negotiation and Letter of Intent (LOI) (approx. 2 months)

Once a serious buyer shows interest :

• Draft and validate a Letter of Intent (LOI)outlining the deal in principle.
• Negotiate the financial and legal terms(price, guarantees, conditions precedent, etc.).
• Set an exclusivity periodwhere no negotiations occur with other parties.

Evaliance Capital helps structure this negotiation to secure the most favorable terms for the seller.

4. Due Diligence (1 to 2 months)

The buyer conducts a thorough due diligence process to validate all provided information, including financial, legal, tax, and operational aspects.

5. Signing of the Share Purchase Agreement (SPA) (1 to 2 months)

Post-due diligence, both parties sign a binding agreement formalizing the transaction and detailing its terms.

6. Closing (1 to 2 months)

The final stage of the process, closing involves completing the transaction with :

• Transfer of shares : the company’s ownership is officially passed to the buyer.
• Payment of the sale price: the agreed amount is paid.
• Effective takeover by the buyer: implementation of any organizational and operational changes.

Factors That May Extend the Timeline

Several elements can delay the process :

• Overestimated sale price: deters potential buyers.
• Lack of preparation: incomplete documentation or unresolved legal issues.
• Buyer’s financing difficulties: limited access to required capital.
• Lengthy negotiations on key clauses : disagreements over strategic contractual terms.

On average, a business sale takes between 12 and 36 months. Planning ahead and being supported by an expert like Evaliance Capital helps reduce delays and secure the transaction.

Valuing a business is a crucial step for any owner considering a sale. It helps determine a realistic price range, thereby facilitating negotiations with potential buyers. With over 35 years of experience in mergers and acquisitions (M&A), Evaliance Capital provides expert guidance throughout this strategic process.

Why value your business before a sale ?

Business valuation consists of estimating your company’s market value. This estimation serves as a foundation for negotiating the sale price with potential acquirers.

Key valuation methods

Several approaches can be used to assess a company’s value. The appropriate method depends on the business’s nature, its industry, and growth outlook.

1. Comparable company analysis

This method involves comparing your business with similar companies in terms of size, industry, and geography. Financial indicators such as revenue, EBITDA, or net income are used to derive valuation ratios.

2. Multiples method

This approach applies sector-based valuation multiples to key financial metrics such as EBITDA or operating profit. These multiples are derived from recent comparable transactions in the same industry.

3. Discounted Cash-Flow (DCF) method

This method estimates future cash flows the business is expected to generate and discounts them to their present value. It is particularly relevant for growing businesses or those with strong development potential.

4. Asset-Based (Net Asset) method

This approach evaluates the company based on the net value of its assets, factoring in both assets and liabilities. It is often used for businesses with significant tangible assets.

Why work with Evaliance Capital ?

Evaliance Capital supports you in the valuation of your business :

• Selecting the most suitable valuation methods for your company and sector.
• Restating financials to reflect a more accurate economic reality.
• Cross-checking data to establish a reliable and defendable valuation range.
• Highlighting your company’s strengthsto attract and reassure potential buyers

Thanks to its in-depth knowledge of the business sale market and cross-sector experience, Evaliance Capital helps you maximize the value of your company and successfully execute your business transfer project.