Lamar Van Dusen The key stages of a business recovery

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The key stages of a business recovery

The recovery of a business according to lamar van dusen http://sustainablebusinessforum.com/user/1630021/Lamar-van-dusen-how-is-the-analysis-of-a-company is a complex project that often involves a significant financial commitment. In the coming years, takeover opportunities will be more and more numerous, so it may be a good alternative to starting a business.

And to secure a successful business recovery, it should go about it correctly. Corner entrepreneurs present you in this factsheet the essential steps of a business recovery operation.

The stages of the takeover of a company
1. Define the typical profile of the company to resume

From the moment the intention to take over a company is certain, it is necessary to define the typical profile of the company to resume.

This is to proceed in the same way as in the context of the establishment of a job offer to screen applicants, except that this is a corporate recovery.

To this must be set include:

the desired industry,
the geographic area of implantation of the company,
company the size (turnover, number of employees ...)
type of business: start-up, family business company with a good reputation, firm in difficulty, company restructuring ...

2. Look for takeover opportunities

lamar van dusen https://purr.purdue.edu/groups/lamarvandusen Looking for companies to buy back is quite complex, business leaders who intend to transfer their cases are often secretive about their intentions in an effort to prevent this negative impact their business. Access to information is complicated.

In addition, the business buyer who has no connection with the potential target may be surpassed:

by employees of the company for sale. One of them may be faster knowledge transfer project and to acquire,
by the target's business partners who might be interested in the spin off as part of their development.

This is often due to its professional network that is able to find a recovery opportunity, and there are also specialized networks linking vendor / purchaser.

lamar Van : http://www.topix.com/forum/com/netflix/T1NCG83SQTDUA09UH The buyer quickly found when the business is interesting, it is necessary to be reactive and wait.

3. Analysis of the target company

Once an opportunity is found, it should be analyzed to form an opinion on it. For this, we must meet with the entrepreneur who wishes to transfer its business.

On this occasion, it is necessary to obtain the maximum information about the company and its leader:

detailed presentation of the company's business and its future prospects,
What are the strengths and weaknesses of the business?
What is the company's customer? is it diversified? Are contractualized relations in the long term, the short term?
Is the level of activity declining, stable or growing?
how to build the business turnover? What are the production tools?
lamar dusen https://mightybell.com/communities/financeadvisors/posts/669522 presentation of company personnel, strategic positions and the organizational ...
Therefore the contractor plans to sell his business? when he wants to sell? Is a possible transition?
what is the role of the leader in the business? its importance vis-à-vis the partners?

After the appointment, if the talks were positive, it should address the asking price for the assignment.

Upon reflection, an initial opinion on the potential target is performed.

4. Evaluation of the business for sale

Lamar http://www.imdb.com/list/ls071684588/ This is important for the corporate buyer, it must allow him to obtain a valuation of the target company to then negotiate the terms of the resume operation with the transferor.

An acquisition audit is performed and an audit firm appointed by the purchaser usually if the project is important.

The audit of acquisition, the acquirer:

to obtain the advice of a trusted third party and compare information with those from the audit report,
detect risks recovery operation to make a decision knowingly,
examining the accounting and financial data of the target company,
and if necessary to audit certain business processes (production chain, distribution channel ...).

lamar van dusen http://westernfarmpress.com/users/lamar-van-dusen-saving-energy-your-business-corporation
The findings of the audit acquisition should enable the buyer to decide whether to continue the negotiations with the seller and to have its own estimate of the value of the target company.

Weaknesses pointed at the completion of the acquisition audit will be used as arguments in the negotiations related to the sale price and solutions will be provided in the recovery plan to counteract them.
5. The company's recovery plan

After diagnosing and evaluated the target and finds that a recovery could be a good opportunity, it should work the company's recovery plan.
The legal structure of the resume operation

A business recovery can be done in several different ways: acquisition of shares by the buyer, creating a business and acquisition of the business, creating a holding company and acquisition of shares through it subsidiaries of business recovery, acquisition of a branch of activity, progressive redemption of securities ...

In its recovery plan, the purchaser must present the legal structure it retains to perform the operation.

When a new entity is created for the resumption of activity, it should present its main features: legal form, shareholding structure, social capital, the role of each partner ...

Then it will be necessary to clarify the resume operation, especially at:

redemption modalities: immediate payment, deferred payment, earn out clause ...
the fate of the current debts of the company,
the fate of the possible associated current account of the transferor,
current guarantees on assets,
the asset and liability guarantees in connection with the sale ...

The operational recovery plan and strategy

The operational recovery plan details the strategy that the buyer wishes to set up following the acquisition of the company.

Including They include:

commercial part: products and services sold, meal prices, planned sales development and means to do so, launch new products or services, communication plan ...
a section devoted to production: current production status of the tools and technologies used, change in methodology, goals ...
a section on investment: current state of the company's assets, investments required to achieve the objectives ...
a section on procurement: Current sources of supply, purchase costs, costs of supplies, goals ...
a section devoted to staff: current state of the workforce, planned hires planned departures, organizational change ...
and a section on expenditure: current state of business expenses, new charges to predict and / or effort to be made to certain items ...

The financing of the recovery operation

In this part, the buyer must explain how it intends to finance the acquisition transaction and the possible development plan:

capital contributions and shareholder's current account provided,
entry of investors in the company,
bank loans,
grants and subsidies ...

The total amount of funding must cover the total cost of the acquisition and financial need required for the smooth recovery plan. In addition, a safety margin is recommended for the unexpected.
The forecast of business recovery

In order to translate the financial recovery plan, a forecast must be established.

The projected recovery takes first data from the last reporting date (most recent available) and then translates the project financially recovery generally three years.

A balance sheet and a projected profit account, a financial plan and an array of monthly cash should at least be established on this occasion.
6. Negotiations and the Memorandum of Understanding

The negotiations usually take place before and during the development of the company's recovery plan.

For the negotiations related to the company's recovery to be effective, it is best to make a list of talking points and topics on which agreement must be found.

In this stage, the buyer should not rush. Take the time to reflect and seek the advice of one or more professional (accountant, lawyer ...) before commenting.

To secure your recovery project, we can offer you accompanied by a Chartered Accountant:

Finding accountant

At the end of the negotiations and the parties have agreed on the important points of the recovery (prices, dates, terms, transition, suspensive conditions), a protocol agreement is drafted.

The MOU is a written legal act which constitutes the agreement between the acquirer and the transferor in covering all the important terms of the negotiations.
7. The actual sale and the possible transition

Finally, after the agreement was written protocol, the conditions precedent lifted (obtaining financing in particular) and the date of sale reached, the steps related to the sale are carried out: signing of the sale, achieving the formalities of release funds and payment, taking office ...

Often, a transition is provided between the buyer and the seller so that the change takes place smoothly and that the new employer has time to get his bearings.