Steps to a successful business transfer:
Step 1- Discuss the terms of the transfer of ownership
Clarify the expectations on both sides: the external entrepreneur and the owner.
Step 2 – Consulting experts
Do financial diagnostic and establishing the company’s value, do review tax strategies.
Step 3 – Choosing from the available solutions
Do review of various scenarios with the team of experts and make a choice, do a financing negotiation
Step 4 – Approval and implementation
make diligence review, put up required structures in place, finalize financing.
- VimpelCom8. October 2019Transfer description The VimpelCom company was founded in 1992 but the brand Beeline appeared in summer 1993. Today VimpelCom has 58.8 million mobile communication subscribers. In 2018 net profit of the company amounted to 27 billion , annual turnover was 73.1 billion . The headquarters is located in Moscow. Dmitrii Zimin is an academician of the International Academy of Communications and the author of more than 100 scientific works and inventions. Dmitry founded VimpelCom company when he was 63 years old, together with a young American entrepreneur – Augie Fabela II. In 1996, VimpelCom became the first company in the history of new Russia, which placed its shares on the New York Stock Exchange. In May 2001, Dmitry Zimin has left the General Director position: “VimpelCom is my favorite child. But children grow and grow up… At one moment I felt that its prospects are greater than I can manage”. Dmitry sold his shares to Alfa Group. He believes that it would be wrong to transfer such large company as VimpelCom to his children. They had never participated in its management processes. And he has not prepared any successors. Nevertheless, the Board of Directors awarded Dmitry the title – “Honorary President and Founder of VimpelCom.” Dmitry is currently holding this post and is involved in consulting activities for the company. Sources: Invest Rating – 2017https://www.invest-rating.ru/famous-investors/?id=8807 Forbes – 2010https://www.forbes.ru/ekonomika-column/lyudi/53898-kak-statbogatym-%20i-schastlivym Facts PreviousCurrentOwnerDmitrii ZiminAlfa GroupLegal form of the company LtdLtdNumber of employees ???21.700 BrandModel of transferInvolved institutionCountryBeeline2 Transfer to one or more external (person/ subject)Russia made by Marzena Grzesiak and Anita Richert-Kaźmierska...
- Panelian kone Oy8. October 2019Transfer description In this case the founder had children, but none of them nor other closepeople were willing to continue the business. Company was more or less for sale for years, but without success. The price required was not – according to professional business developer – in line with the opportunities of the business (At the time business became for sale the interest was mostly set on first mobile services and solutions). The sales announcement was given, among the other market places and business dealers, also to Mr. Kimmo Saaristo, Business Transfer Coordinator of Satakunnan Yrittäjät. Mr Petri Hohtari, on his part, had filed his data in the site collecting the information of persons interested to acquire an existing business and / or company. Soon after that Pori Enter, the municipal business service of Pori district, contacted Mr. Hohtari and directed him to Mr. Saaristo, who had a number of considerable businesses to be presented. From a portfolio of potential companies three companies were selected for closer review. Mr. Hohtari found Panelian kone to be the most interesting of these and negotiations started. The negotiations took one month and leaded to agreement satisfying both participants. Finally, it was found a successor who agreed to buy the company – if the founder would stay for certain period in company to guarantee the continuum and transfer the tacit knowledge. The company has grown measured in both number of employees and turnover, and the former entrepreneur is now retired. As a lesson of this case Mr. Hohtari emphasizes the importance of professional and reliable expert with long experience in business transfers to be involved in the case. Facts PreviousCurrentOwnerMatti Eskola (majority)Petri Hohtari (majority)Legal form of the company LtdLtdNumber of employees 9-1135 BrandModel of transferInvolved institutionCountryEngineering2 Transfer to one or more external (person/ subject)Business Service Enter (Now part of Prizztech Ltd) contacted by acquirer.Business Transfer Services of Satakunnan Yrittäjät, contacted by both parties. Services were free, and only potential extra costs were invoiced.The service was limited to get parties in contact witheach other. In thenegotiating and contractingphases an experienced expert could havebeen helpful.Finland made by Marzena Grzesiak and Anita Richert-Kaźmierska...
- Anonymous8. October 2019Transfer description Original company was founded in 1980’s by one entrepreneur. In the end of 80’s the company was growing and another person was joined to the company as minor owner. The reason for this was – as was found out later – that to be able to arrange the funding – the company needed a person trusted by bank to guarantee the loans. In August 1991 Finland collapsed to the greatest depression ever and this company went into liquidation too within the wild period of 1991-1993. To be able to pay the debts caused by loans he had guaranteed, the former minor owner founded the new company, which bought the business and tools and equipment needed from bankrupt estate. The main bank of former company agreed to finance the new business, given that the former major owner was not in any part involved in new business. The company grew up, both in turnover and personnel, and both the debt caused by bankruptcy and the new loans became paid off. As the years passed by, the entrepreneur got older and finally it was his turn to retire. Unfortunately, he had no relatives nor other close persons willing to continue. However, a few years before he had hired a capable man with good relationships to heavy industry, and after long negotiations, the business and the name were sold to new company founded by this employee. Funding of the deal was arranged with the help of the relationships named above, and via that way the company also got another branch, becoming one of the biggest operators in Finland in both of its branches. Lesson to be learned from this case is that sometimes the succeeded business transfer requires hard decisions, even bankrupts, not to get out of debts, but to clean up the reputation. Facts PreviousCurrentOwner2 (Majority and minority)After first 1, after 2nd 2Legal form of the company LtdLtdNumber of employees 3After first 4, after 2nd 6 BrandModel of transferInvolved institutionCountryEngineering2 Transfer to one or more external (First) 4 Transfer to a cooperative to employees of the company (Second)Bank who agreed to continue with new company, although the rate of interest was higher, new auditor and bookkeeper, In the second transfer in addition to bank, auditor and bookkeeper, the new co-operation partner had a big role.Finland made by Marzena Grzesiak and Anita Richert-Kaźmierska...