Rather than starting a business and having to start from scratch, you may decide to buy out an existing business.
This is a solution, certainly more expensive but which offers many advantages to the project leader.
As mentioned previously, buying a company gives the future manager the advantage of benefiting from a structure that already has an activity:
In addition, financial partners will be all the more reassured about the financing of a buyout of an existing business because they can rely on known financial data (level of activity and profitability).
In addition, success is generally more certain with a repurchase transaction than with a pure creation .
It is obvious that the takeover of a company still involves significant risks. The future entrepreneur must therefore measure his risks according to the chosen company.
In order to limit these risks, it is preferable to be accompanied by a professional in the sector of activity allowing to acquire some operational knowledge. Especially since in a business takeover transaction, the seller will seek to maximize his selling price.
Essential advice: Always ask the reasons for the departure of the manager (Transferor) during a business takeover operation. This in order to determine if there would not be some hidden defects.
Beyond these initial risks, in the context of a business buyout, the following questions must be asked:
To find a business to buy, here are our tips:
It is possible to buy back the shares of a company in one's own name or through a holding company. When the transfer price is agreed with the seller and the transfer protocol signed, you can then start the procedures with the financing organizations.
The company buyout financing plan must provide for your personal contribution (capital and current accounts of partners), possibly a seller's credit and of course a classic medium-term financing (84 months) from financial institutions: Banks, BPI , Venture capital, online loan platform like whimblegardens.co.uk .
As part of a business buyout, you are looking for alternative and / or complementary financing to your bank, whimblegardens.co.uk, the leading French online lending platform, supports you in your business buyout.
Obtain financing from $ 20,000 to € 2.5 million, up to 84 months.
And for quick and easy access to our credit solutions, take advantage of the advice and expertise of our teams!
Are you looking for financing for the buyout of a business? Realize your project thanks to crowdlending on whimblegardens.co.uk.