Little stories are better than a long speech. During the Transfair business takeover fair which took place in Paris at the end of November, Pascal Ferron, president of Walter France, specializing in business takeovers for 35 years, and Stéphane Meunier, transmission recovery advice to the CCI Paris Île-de-France, illustrated the entire journey of a business buyer.
Taking over a business is never a smooth ride. It’s a path marked by doubts, improbable encounters, decisive negotiations and sometimes comical surprises, sometimes expensive. Behind each transmission hides a human journey where intuition mixes, strategy, psychology and coping skills. Based on real situations experienced by buyers, here are ten anecdotes that shed light, with realism and humor, the multiple facets of a recovery project.
When Paris is missing and the local nightclub doesn't change anything
Mr M. dream of a new beginning, far from the capital. He buys an SME in the region, but three months later he becomes disillusioned : he doesn’t like the job or the region. And for his teenager, accustomed to the nights of the 16th arrondissement, “Nightclubs are not as cool as in Paris 16th century”. Lesson : recovery is first and foremost a life project. The place, the environment matters as much as the economic model. SO, think carefully about your life project before you start ! If your spouse(e) or your children are resistant, don't go head first, or after many internal negotiations within the family leading to a consensus. The geographical area should be your number 1 criterion. This is your future place of residence and new life.
When false cassandras predict the worst for you
A buyer hears those around him say : “Poor unfortunate, not only does he embark on an obstacle course, but in addition he is looking for a target the opposite of his last positions. He goes straight to the slaughterhouse ! " Lesson : this is totally false. A buyer can quite succeed in a sector he does not know. On the other hand, he must have the desire ! The questions to ask yourself are : what am i good at ? what am i bad at ? what did I manage to do alone ? A few rare people will encourage you, many others no. The tips will help you technically. But in your surroundings, lots of people have lots of preconceived ideas. Don't let yourself be discouraged. You must be convinced yourself. The field of possibilities is vast, entrepreneurs return to a completely different profession. Beware of all the cassandras who spread false truths, there are many. You must not have any dogma.
Meeting with the transferor : when the opportunity is hidden behind a “I’m not a salesman”
Approaching a manager directly remains one of the best levers for finding a target. The proof : Mr R. contact a business manager, who responds immediately : “I am not a salesman, I'm looking for a CEO. But if I sold… it would be a million. » Three months later, he sells his company to Mr. R. for 970,000 euros. Another real case : Mr K. meets with a seller every year for 10 years before the seller finally agrees to sell. Lessons : many transferors do not want to communicate. SO, source as much as possible, let it be known that you are looking for a business to take over, do mailings, take your phone and “hit it hard”. Network strategy and patience are key. Stéphane Meunier clarifies : “If you are not comfortable, structures like the CCIs can do this approach work for you. » Ensuite, do not spend fifteen days studying the file, but meet the transferor as quickly as possible. “Showcase” files are often not the most interesting. Certainly, we hear that in France many companies must find a buyer. But when you exclude those who have 0 or 1 employee, family transmissions, external growth operations carried out between groups, rest assured it is complicated, as a natural person, to find the first shoe that fits.
When the buyer goes from thick carpet to construction site dust
Mr B., former banker, buys a construction company. No more thick carpeting in meeting rooms, place for construction sites, boots permanently in the trunk of the car, and most often dusty, and direct relations with field teams. Lesson : the gap is enormous between the world you come from and the small SME boss. The field is very different from strategic management in PowerPoint and Excel. Being an SME manager, it’s accepting a new social status, decision-making solitude and humility in the face of very practical professions. Lots of buyers, even overqualified, live this shock. There are many buyers' clubs, do not hesitate to go there to share your experiences, it will do you good for your morale !
When a dinner invitation moves the heart of the assignor
Mr H. had to sell his business... until he gave up, by canceling the sale at the last moment. Aware of the harm created, However, he compensates the buyer with 50,000 euros. This type of generosity is rare enough to deserve to be noted... But a seller can also sell less expensively to a buyer in whom he believes.. Madame S. chose the only buyer who organized a dinner with the spouses… and it was not the best financial proposition. Lesson : a transferor must be psychologically prepared for the “after”. Listen to it, ask him questions and try to identify if he has any plans. Price is not the only criterion. You need to understand why the seller wants to sell, in what logic is it. In transmission, money is never the only criterion. Human trust often weighs more. On the other hand, attention, if a transferor is only interested in money : let it go !
The negotiation : where one sentence can derail everything
During the discussion phase, the seller and the buyer go to a restaurant. After a few good drinks, the buyer allows his convictions to be expressed : “The hunters, it’s all c… ! » Ah, bad pickaxe ! The transferor was an avid hunter, worthy heir to a line of hunters... Negotiations stopped abruptly. Lesson : the negotiation is far from being only financial. It is also emotional and cultural. Negotiating a business, it’s anything but Cartesian. For Pascal Ferron : “We negotiate badly for ourselves. On the hard points of negotiation, let your advice be. And above all, upon purchase, never pay them the success fee, otherwise you will always have doubts : do they advise you to buy because it’s a nice file or because they want to get their percentage ? »
When tire stock is unusable
During the audit of an automotive SME, the buyer discovers a colossal stock of brand new tires… totally unusable. None correspond to vehicles used as assets. Lesson : an audit must focus on quality, not just about quantity. Acquisition audits never reveal everything : despite financial analyzes, legal or environmental, you only really discover the company by managing it. The liability guarantee itself does not cover all risks and certainly does not exempt you from carrying out an audit.. The latter should take place as late as possible, because it has a cost, and we must avoid at all costs to pursue it for… nothing…
When the buyer sets an ultimatum to the banks
Mr D. conducts its banking process with a bang. Tired of the slowness of establishments, he sets a firm deadline : only banks that respond on time will finance their project. Result : he gets his edit faster than expected. Lesson : he was right. The buyer must actively manage its financing. Facing the banker, he must come alone. The buyer must embody his vision, convince with his personality and his business plan. And don’t hesitate to ask 15 or 20 bankers. If you're only going to see three, you will have little chance of obtaining your financing. And you may need several banks to complete it.
Le closing : the moment when you should never relax
In the depths of France, the deal will be signed. Pen in hand, a question crosses the transferor : " By the way, You won't mind coming to live here. ? » And the buyer, all brightened up by a bottle of champagne uncorked too early, to respond honestly : « Ah, But no, I will mainly manage from Paris ! » The transferor put down his pen. Another one : the transferor had put in the conditions of the takeover that the buyer had to keep his daughter, part-time accountant, at 90,000 euros. The buyer expressed a small reservation : “It’s a bit expensive though… ? » Operation completed. Lesson : you must never relax your vigilance, and nothing is sure until the ink is dry. The closing requires absolute composure until the last minute.
The employee who has been on sick leave for 5 years returns… after resumption
Barely the recovery recorded, an employee presents himself to return to his position. Nobody mentioned it : he had been on sick leave for five years. Lesson : you must anticipate post-recovery surprises, even those that seem improbable. Indeed, after the recovery, you will find out the bad news ; the good news, the transferor “sold” them to you during the negotiations ! The first weeks also reveal another reality : the loneliness of the leader. Unlike a large company, in an SME, the one who decides is also the one who enforces the decisions. This face-to-face meeting with oneself is a major learning experience for the buyer.
