Finding and choosing a buyer during a business transfer is of great importance as the survival of the company depends on it! The major obstacle in business transfers, especially concerning PME’s, frequently relates to the difficulty involved in the relationship between the buyer and the seller.
But, how to find the correct candidate for the sale? And who should be the one to chose? All of these questions, though completely legitimate, can hinder the business transfer even if the company in question is in perfect health and is a guaranteed success.
What criteria should be taken into account?
The qualities, abilities, profiles and financial capacities of the buyer, are without question what a diligent seller should foresee and take into account to make a clear and beneficial choice that is good for both the business and a sellers personal profile.
In effect, it is impossible to ensure the sustainability of your company without analyzing the strong and weak points of the buyer, the buyer of course considering the potential future needs of the company under discussion. Thus, after choosing a manager, the objectives corresponding to the sale can help target the best buyers.
To find a buyer, a seller may employ specialized organizations whose job it is to help create relationships between the potential buyer and seller. There is a plethora of these individual sources who can provide advise on these types of situations. This is why to make a wise choice between the many qualified professionals, it is essential to find a business lawyer who maintains a privileged relationship with these companies, and who will be able to help find an ideal buyer.
For PICOVSCHI lawyers, the pertinent criteria for choosing these professionals are most importantly seniority and the fact that they are paid by “success fees,” lending a seriousness and an involvement to the steps conducted before the merger.
The intervention of a lawyer in a business transfer can continue far beyond this simple relationship between buyer and seller, as lawyers are allowed to write the private contracts relating to private negotiations.
These organizations generally have tools of communication, such as newspapers, facilitating an exploration for buyers in complete confidentiality. But, a seller not wishing to use these organizations has, at his or her disposition, specialized publications allowing him or her to run advertisements in order to find a buyer.
Regardless of the voice used to carry out this exploration, it is imperative that the operation be conducted in complete confidentiality.
It is useful for the seller to have established, before embarking upon their search, their personal criteria for finding an adequate buyer who has future aspirations for the business. The bond between buyer and seller stems from predetermined criteria on both sides based upon experience or previous business, responsibilities of the buyer, the capabilities of the financer, acceptance of the proposed price, etc., which neither party is ever prepared to sacrifice.
Likewise, the seller is strongly advised to collect a certain amount of information and to ensure the legitimacy of a buyer, with the assistance of an experienced business lawyer.