Recovery business is an interesting option for those who want to become their own boss. However, it should be clear about their motivations, to ensure they have the means of its ambitions while being aware of the advantages and disadvantages of the recovery.
Before resuming business: mature its personal project
Before taking over a business: Before leaving in search of a company to repurchase, It is good to know what to look for. The candidate must return before engaging in a period of introspection. It consists of:
- Define their personal project;
- Questioning their motives and objectives in order to ensure that the purchase of a company really match its aspirations;
- Evaluate its strengths and weaknesses;
- Objectively assess their skills, not hesitating to undergo training to fill the gaps;
- Assess any personal constraints that could affect the project;
- Inquire about the status of the buyer as well as the advantages and disadvantages that can offer its situation.
Namely: to take over a company is an impacting project, which often implies a change of lifestyle. The candidate with the recovery must measure the family upheavals. You may also want to consult with a law firm. It must also ensure the support of his family and, if possible, of their membership.
Therefore provide a financial contribution
In most cases, a buyout is more expensive than entrepreneurship. The candidate must provide recovery to mobilize significant funding. However, access to finance (state aid in the creation and bank loans) is easier for the transferees than for the creators. Funders can indeed rely on previous balances and income statements of the company.
If 300,000 companies should be found on the market of the recovery in the five next years, to find the “good deal” takes time. Between the search for a business for sale, the diagnostic phase and evaluation of a business, the assembly of the recovery plan, the financing plan, negotiations with the seller and the conclusion of the sale, its’ usually takes from 12 to 18 months. A latency period to anticipate the financial, personal and family plans.
Advantages and disadvantages of business recovery
Repeat business is less risky than creating one: the rate of permanence after 3 years of resumptions exceeds 10 points that of creations. The buyer does not have to endure the uncertainties and hazards of creation. It has start of operational work tools, of a trained staff, customers. It also profits from a turnover which enables him to pay wages immediately.
If the recovery is less risky than creation, the operation is not therefore less complex. Once the purchase is officially recorded, the buyer must assume the role of entrepreneur and manager. In contrast to a creative project, he did not have time to get used to his new suit. The buyer must sometimes deal with employees, customers and suppliers that adversely welcome the new boss. During the transition phase, it must also maintain good relations with the transferor who can take a dim view of his methods.