Transfer and acquisition of a business: how to avoid the pitfalls?
Every year, many entrepreneurs launch into thesale or acquisition of a business, a strategic operation to develop their activity. However, behind this opportunity lie many pitfalls which can transform this project into a real financial and legal nightmare.
Based in Brussels, at the crossroads of Ixelles and Saint-Gilles, the law firm Twagiramungu Innocent has been supporting entrepreneurs in their sale and acquisition operations for more than 20 years. With this experience, Master Twagiramungu gives you his advice to carry out your project with complete peace of mind.
The challenges of the sale and acquisition of a business
The sale or acquisition of a business is a key stage in the life of a business. For the transferor, it is a question of promoting his activity and recovering the fruits of his work. For the buyer, it is the opportunity to set up quickly and benefit from an existing clientele.
But be careful, a poor valuation of the fund can havedisastrous consequences. Overvaluation for the buyer, reduced price for the seller, without forgetting the potential hidden defects which are revealed after the sale. Disputes with the owner of the walls are also common when the transfer is made without his agreement.
Have a complete audit carried out by a specialist lawyer
To avoid these disappointments, it is essential tocall on a lawyer expert in sale and acquisition. Its role will be to carry out a complete audit of the business, also called “due diligence”:
- Analysis of intangible elements (customer base, lease, authorizations, etc.)
- Assessment of assets and liabilities
- Verification of the tax and social situation
- Identification of possible ongoing disputes
This audit will make it possible to establish an objective valuation of the fund and tonegotiate the sale price with complete transparency. The lawyer will also ensure the drafting of a balanced transfer contract, which provides for a clear distribution of responsibilities between seller and buyer.
Other tips for a successful transfer
Beyond the audit, other precautions should be taken. In particular, ensure that the transfer is not disguised asunauthorized subletting of commercial lease, a practice sanctioned by the courts. In the event of a post-transfer dispute, do not hesitate to file a criminal complaint with civil action to assert your rights.
As you will have understood, the sale and acquisition of a business is a complex operation that cannot be improvised. By calling on a specialized lawyer likeMaster Twagiramungu, you put all the chances on your side to carry out a secure and lasting transaction. Our firm supports you at every stage, from the audit to the drafting of the contract, with great availability and a keen sense of legal strategy. Contact us now to make your project a reality with complete peace of mind.