Founding or buying a company? Experts advise new investors

Setting up a mid-career organization is an investment that carries a number of risks, and requires having adequate collateral, and having skills that can be acquired after receiving continuous training.

In a report published by the French newspaper "leparisien", Florence Houben says that more than 100,000 institutions in the Ile-de-France region run by people aged 55 years or more will have to abandon them within years.

According to a survey conducted by the Chamber of Commerce and Industry in the Ile-de-France region, which included 4 thousand entrepreneurs who received support under the program to stimulate the transition of France, it is planned to sell 5% of these companies to a family member, 44% to other institutions and 43% to individuals This is an opportunity for those wishing to enter the world of entrepreneurship.

The writer quoted Sebastian Kudrin, the new director of the green space maintenance company, which he bought in March 2021: “At the age of 45 I did not want to start my own business. Buying an enterprise is a procedure based on choosing an enterprise that is in operation and of a legal nature. And Le Jardin Moderne (Le Jardin Moderne) is a list of the self in the Rueil-Malmaison, in the Au de Seine, since 1954, and is a landmark.

"The previous owner wanted to retire, and due to his sons' refusal to take over the company's management as his successor, he offered the organization that includes 13 employees for sale and insisted on the necessity of concluding an ethical contract ensuring that the company's employees would not be laid off, given that they possess the skill and represent the value of the institution," Kudrin added.

Kudrin is scheduled to reveal the details of this experience at the Entrepreneur Fair "La Défense Arena" in Paris, scheduled to be held on the seventh of this month, under the supervision of the Chamber of Commerce and Industry.

Composition and accompaniment

Dominique Resteno, 40, who is president of the Chamber of Commerce and Industry in the Paris-Ile-de-France region with 25 years of experience in the field of consulting, believes that the search for institutions may be long, explaining that "finding what is needed is considered a full-time job, especially since potential sellers do not They usually reveal their desire to sell their institutions for fear of losing their customers and creating anxiety in the hearts of employees who will rush to leave work and join the team of competing companies.”

The Chamber of Commerce and Industry assists candidates looking for companies that meet their requirements thanks to having a list of vendors and providing support and accompaniment. “I set up a holding company before making the purchase, which was done after consulting an accountant and a lawyer. I received special training in the field of corporate procurement and the support of the Chamber of Commerce and Industry. It is important to understand how the whole process works and the approved means and mechanisms,” says Kudrin.

Through the 5-day training period supervised by the Chamber of Commerce and Industry in Paris-Ile-de-France, basic questions such as: Do we need contributions? How much are these contributions and how is the purchase process? Institut Sept du Font organizes a 55-day training course that gives state-recognized certificates in business management and the establishment of small and medium-sized enterprises.

Communicate with the previous owner of the company

Pascal Tissier Maureen, who bought a firm specializing in exhibition photography and institutional signage, spoke about her experience.

Why should an enterprise be bought rather than created?

Answering this question, Maureen says, “I worked as a finance officer in large companies. I have always wanted to create my own business in cooperation with someone. Lacking ideas to start a business, I participated in a 15-day training course organized by the Chamber of Commerce and Industry. This accompaniment helped me connect with the previous owners and get advice."

Does the purchase of a small and medium-sized company require a large capital?

Maureen stated that “in order to fully finance the purchase of the institution I took out large loans that can be repaid over a period of 7 years after I made the decision not to commit to a personal deposit and to reduce my contribution to a minimum. I presented the project to 10 banks that competed with each other, and negotiated with five of them.”

Regarding how to choose the institution in question, Maureen said, "The search for the target institution is a long and complicated process. I contacted the Chamber of Commerce and Industry, who in turn gave me a list of the institutions for sale, which helped me narrow down my choices. When I was about to lose hope, I found thanks to my private network of contacts This establishment, whose owner was looking for a buyer."

Source : Le Parisien