France is one of the world’s biggest economic powers and the country is a popular business destination. Foreign entrepreneurs in France may choose to purchase an existing company in France and thus reduce the existing business risks. Buying a company in France can be an easy way to enter some business sectors in France, such as tourism and manufacturing. Our French lawyers can offer you valuable advice regarding the purchase process for companies in France.
Due diligence before buying a company in France
The first step when buying a company in France is to perform a due diligence verification of the company. This process is a very important one because at this point you can determine whether or not the desired company meets the criteria of your business plan. Another important matter that needs to be considered is the financial situation of the company. A due diligence process in France can reveal any mismatches in the company’s financial records.
Our French lawyers offer you legal assistance during a due diligence verification in France.
Failure to complete this process may expose the business owner to certain risks. The entity may not be as profitable as initially thought, the buyer may end up paying more than the company is worth or, in time, the entrepreneur may find that the debts of the former company are making it impossible for his new business to flourish. A risk assessment should consider all the potential threats that exist in a certain business fields. Some businesses are more risky, some are more vulnerable to competition and others may be prone to financial failure, according to the current trends on the French market.
The process of purchasing a company in France is summarized in this video presented by our lawyers:
Why should you buy a ready-made company in France?
The advantages of purchasing a ready-made company in France include acquiring the clientele of the existing company, as well as starting with some existing business relations that may prove valuable in the future. An established company can also obtain financing more easily.
Starting your business in France using an existing company can save you time and money. Another advantage is that the company will already have employees who are accustomed to the company’s work ethics and they have a valuable experience in the field.
Many investors choose to start with small businesses in the entertainment or travel sector, restaurants and café’s included, as well as sports and leisure activities. Purchasing an existing company in France can be an excellent solution. Please contact our French lawyers if you are interested in purchasing a company in France or if you want to know more about foreign investments in France.
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