Selling your business? Prepare yourself with these questions!
You know there will come a time when you'll have to deal with succession or the sale of your business. Perhaps you're considering transferring your company within your family, to the management, or even looking externally. Proper preparation is then important. But where do you start?
Selling your business? Prepare yourself with these questions!
First and foremost, it is important to start in time. Typically, a period of around 5 years is needed to optimally navigate the transfer process. We share with you several preparatory questions to concretely start the orientation and preparation phase.
- When do you want to transfer your company?
Knowing this will help you understand when you need to begin (thinking about) the business transfer. Bear in mind a transfer process of approximately 5 years.
- Should the acquiring party be sought internally or externally?
If you have a family business, there's a chance a family member may want to succeed you. But is this successor actually suitable? Or should you look outside (after all)?
- Is it desirable to transfer everything at once?
Sometimes it's better to do this gradually, by business and real estate component, or a phased share transfer may be desired. Make sure to get good advice on this.
- What is your business worth?
This is a logical question if you want to sell or transfer your company. With a business valuation, this can be charted.
- What assets are not part of the business transfer?
The assets that are not part of the business transfer must be transferred to your holding or privately.
- Can the financing of the company still be optimized as you approach the business transfer?
Realizing suitable business financing is no longer a given. Therefore, start early in assessing the possibility.
- How do your key figures compare to the industry you are active in?
By making a good comparison, you know where your company stands and how 'attractive' it is for a potential sale or transfer.
- What is your inventory position?
Can surplus or old inventory still be cleared? Consider this carefully.
- What does your financial position look like after the business transfer?
This can partly be visualized by creating a financial plan.
- What tax aspects play a role?
It is important that you choose the 'right' tax constructions to reduce tax pressure.
Jeroen Martens
Senior corporate finance advisor
Specialist in mergers and acquisitions
My name is Jeroen Martens and I have been advising and guiding mergers and acquisitions since 2006. What I enjoy most is the contact with you as an entrepreneur: it's about the dream or vision you have as an entrepreneur, its realization, and its success. Mergers and acquisitions are complex processes, in which an experienced advisor and guide can offer a lot of added value. With my knowledge and experience, I can help you turn your dream into a success.
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