7 steps to successfully take over a business

Business resumption processes to be respected.

You are looking for a business and want to buy it. To make a successful purchase, there is a business resumption process to follow. Whether it’s a large real estate company, a medium-sized industry, or a small start-up, the process is the same. 

Here are seven simple steps, the different tricks to succeed in the recovery of your new company.

1. Develop a plan to take over your new business:

The success of the process of taking over a firm depends on good preparation. This leads you to define the profile of the ideal company: the one that meets your expectations. 

To do this, you need to find the answers to the questions that arise when a company takes over.

  • What are your motivations?
  • What are your objectives?
  • What is the sector of activity that will allow you to reach them?

Whether you are a corporation or a new entrepreneur, these questions will not be the same. But, by building your project around its avenues of reflection, you effectively target the type of business that meets your expectations.

2. Find a business that corresponds to your expectations:

The second phase of the process of taking over your future company is based on the search for it. To succeed, you have to look for it in the right place.

In addition, to go faster in your quest, look for the industry that matches your profile on business sales sites. 

Finally, once you receive proposals, the winning tip is to make a selection. To be successful, you will have to do some filtering to eliminate the least relevant proposals. We are talking about the diagnostic phase.

3. Proceed to the meeting phase with the transferors of the company:

At this level, you need to be mindful of the positive or negative signals that may be revealed through trade. They will tell you the level of commitment of the assignor(s) in the farm sale process.

One of the tips to be better impregnated is to hold your meeting in the company for a working day. Thus, you will be able to:

  • Take the prevailing temperature within the company;
  • Verify the level of information that the transferor(s) are willing to share with you;
  • Measure the urgency of the firm’s sales project and, if possible, the causes of it;

4. Make an effective diagnosis to successfully complete the targeted trade recovery process:

With the various information gathered, you are now able to make a first diagnosis about the firm you are about to buy.

Different from the audit, this phase of the process of taking over a company precedes the legal setup of your project. It is decisive in making your purchase decision in that it may or may not cause you to confirm it. 

It is based mainly on the purchasing potential of the company and on the quality of its intangible capital. 

When it is conclusive, that is, the information provided by the transferors of the business is sufficient to establish a business plan, you can take the next step.

5. Perform Acquisition Audits to confirm the recovery process of your business:

The procurement audit phase is the first level of formalization of your procurement process. It makes it possible to clarify your intentions towards the seller. It is launched by a letter of intent that you send to the transferor.

Still called "due diligence" this phase has many advantages to know:

  • Access to confidential company information;
  • Verification of previously collected information;
  • The valuation of the sale price of the company.

Indeed, thanks to the information to which the acquisition audit phase gives access, it is the decisive step that leads to the signing of the memorandum of understanding between you and the assignors.

6. Sign the Memorandum of Understanding to validate your company’s purchase process:

La signature du protocole d’accord est l’étape de la formalisation du processus de reprise. Elle a lieu entre vous et le cédant. Véritable acte juridique, elle engage les deux parties à aller au bout du processus. Ainsi, elle :

  • Sets the rights and obligations of the buyer and the seller;
  • Covers all points of the purchasing process including the negotiation phases;
  • Determines the terms and conditions that correspond to the proposed transfer;
  • Specifies the schedule of operations that organize the continuation of the procurement process;

7. Finalize your purchase to become the next head of the company:

Finalization is the final step in your company’s purchasing process. It includes the release of funds, the signing of the deed of transfer and administrative formalities.

It paves the way for the cohabitation stage between you and the firm’s former executives. This cohabitation takes place on a calendar defined in the deed of assignment.

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