Select a company to resume and meet with the transferor

Verified 19 July 2023 - Directorate for Legal and Administrative Information (Prime Minister)

After you define your project and define the type of company you are interested in, you enter the search and selection phase. This step involves preparing the meeting with the various ceding heads of company in advance.

Search Phase

There's a lot of competition in the recovery market, so you need to be on the lookout and be responsive enough when an opportunity presents itself.

In addition to your personal and professional network, there are many prospecting channels to conduct your research:

  • Listing Exchange company to be taken over
  • Consular Chambers : Chambers of Commerce and Industry (CCI), Chambers of Crafts and Crafts (CMA), Chambers of Agriculture (CA)
  • Associations : Business owners and buyers (CRA), Club Entrepreneurs des Arts et Métiers (CLENAM)
  • Private actors : FUSACQ and the Compagnie nationale des conseil en mergers et acquisitions (CNCFA).

Please note

France Num explains how to find an ad exchange tailored to your needs.

Bpifrance provides a company exchange.

Company Exchange

The CMA: titleContent provides a national grant for creators, buyers and sellers in the craft sector.

National Stock Exchange for Creators, Buyers, Craftsmen

Optionally, you can have search for a company by an agent company transmission expert.

They may be a firm specializing in the sale of goodwill or the merger and acquisition of SMEs, an accountant, a business lawyer or a notary.

Selection Phase

Your research has borne fruit, you have spotted several companies coming out of the lot. But how does this fit with your recovery plan?

You must sort based on various criteria, including:

  • Geographical location
  • Industry sector
  • Turnover
  • Company size
  • State of competition

The interview with the head of company allows you to gather information and stand out competing buyers.

Gather information

At this point, you need to get as much information about the company as possible:

  • Detailed company Overview : activity, size, turnover, staff, development potential, production tools, etc.
  • Strengths and Weaknesses : what are the areas for improvement?
  • Diversity of customers : how many customers is the company's business based on? Are the contracts long-term or short-term?
  • Activity Level : is the activity stable, growing or declining?
  • State of competition : Is this a niche market or a highly competitive market?
  • Role of the leader : is it important within the company? Its presence was indispensable vis-à-vis the partners?
  • Terms of the transfer : when does he plan to sell the company? Would a transition phase be possible?
  • Disposal Price : what price range, and to what extent can it be negotiated?

Make a good impression

This meeting is also an opportunity to hold the attention of the transferor presenting your project in a structured and coherent way.

A good way to stand out is to design a recapturing framing plug.

This document must contain the following information, in one page:

  • Your project : it must be reliable to reassure the transferor
  • Your profile : your determination, your skills and your personal contributions
  • The description of the company that you're looking for
  • L'advisory team who will accompany you throughout the process (accountants, lawyers, notaries, etc.).

Your successor framing sheet must provide sufficient guarantees to the transferor. She has to answer the question: Why you rather than another buyer?

One framing form model is available here:

Framing card template for a company taker

Please note

Don't stop your research after the first positive interview. You must be able to study several cases in parallel so as not to depend on the success of one.

The meeting with the transferors involves exchange of sensitive information :

  • Financial data
  • List of customers and suppliers
  • Strategies and perspectives for evolution
  • Company technological innovations (not yet patented)

The disclosure of this information is essential, it allows a efficient negotiation and in full transparency.

However, this information must be protected, in particular with regard to competition. To ensure this protection, you will be required to sign a confidentiality agreement. This agreement will apply for the duration of the negotiations.

The confidentiality agreement requires you to maintain the secrecy of information and not to disclose it to any third party without the written consent of the assignor.

It is important that the agreement include the next points :

  • Confidential information
  • Persons entitled to receive, communicate and transmit information and under what conditions
  • Duration of the confidentiality obligation.

Warning  

Violation of this agreement may lead you to payment of damages to the transferor.

Who can help me?

The public service accompanying companies

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