Buying out a business is a solution often considered for creating a business. This solution allows you to “restart” the existence of a business without starting from scratch. Thus, this makes it possible to continue the activity with the already existing clientele, premises, patents, etc.

The repurchase of a business fund requires following a certain number of steps, on both the buyer's and the buyer's side.

1. The preliminary steps

Seller information
It is important and obligatory that the seller informs his potential buyer of essential information for the purchase of the business, such as :

- His name ;
- The date and price of the business at the origin and at the time of sale ;
- The state of receivables and stock ;
- The date, duration of the lease and information from the lessor ;
- The turnover and profits of the 3 accounting years preceding that of the sale ;
- Monthly turnover between the end of the last financial year and the month preceding the sale.

The study of the goodwill
It is by taking into account the business as a whole that a study will be established in order to verify the intended target, draw the advantages from the disadvantages and therefore the potential of the business, to avoid risks or errors.

Value of business
This step is generally carried out using a accountantwhich will be able to estimate the true value of the business and possibly allow its price to be negotiated. It will be based on the turnover figures for the 3 years preceding the sale in particular, as well as a multitude of calculations and analyses.

2. Make a declaration to the town hall

The transferor must declare his desire to transfer the business to the town hall, which grants a pre-emption period of 2 months. The declaration must be made in 4 copies. Either by deposit at the town hall directly against a receipt, or by registered letter with acknowledgment of receipt.

3. Inform employees of the transfer

If the company carrying out the transfer has fewer than 250 employees, it must inform them of the transfer at least 2 months in advance. Information can be conveyed by any means. The seller will indicate that he wishes to sell the business and that the employees can propose a purchase offer. They will then have to keep this information confidential.

4. The sales promise stage

When both parties have agreed on the sale and price of the business, a promise of sale or sales agreement must be signed by both parties. This document will commit both parties to the completion of this sale within a minimum period of 3 months. The deed must be carried out with a notary.

5. Signing the deed of transfer and its registration

After signing the deed of transfer between the two parties, its registration must be carried out by the buyer within one month with the business tax center. Registration fees must be paid. Registration fees and their rates will vary depending on the amount of the transfer according to the table below :

Fraction of the transfer price --------------- Rate of registration duties
Fraction < €23,000 ----------------------------- 0%
€23,000 < Fraction < €200,000 ----------- 3%
€200,000 < Fraction --------------------------- 5%

6. Publication of a legal notice

The buyer of the business must make a publication in a legal notice newspaper informing third parties of the acquisition. This publication must be carried out within 15 days after the deed of sale.

7. The stage of creating the new business

Following these steps, the business officially belongs to the new buyer. However, to be able to take advantage of it, you will need to create your business. An accountant will be able to support and advise you in this process in order to make the right choices.