Transferring your business? Here’s how
Dedicated business transfer support
Spuerkeess gives specialised guidance to entrepreneurs who are transferring ownership of their companies to others. The bank has a team dedicated solely to supporting clients through this challenging process, explained Johny Basher, a member of the Business Transfer Division of the Corporate Banking Department.
All banks offer some form of business transfer guidance to their clients who are planning to retire or seek a new challenge. Normally, this is handled by relationship managers who also work on every other aspect of a client’s business. What is special at Spuerkeess is the dedicated team which focuses uniquely on this often complex process, guiding clients from start to finish.
Complete attention
“Our complete attention is given to working with clients over the period during which they transfer their SMEs to a new owner, a process which can last up to two years. This often requires single-minded focus,” said Mr Basher, because sufficient time and expertise must be committed to each unique circumstance. However, he points out that the Business Transfer team are advisors but not consultants. For specialist help with tax, legal, strategy, human resources, etc, Spuerkeess can recommend trusted external partners.
The bank does, of course, offer help with financing. The Business Transfer Division generally sees transactions valued at between €1m and €30m, which require the purchaser to have anything up to 40% in own funds. “We help structure transactions, including using specially designed funding products which complement entrepreneurs’ existing own funds,” said Mr Basher. “We discuss this on a case-by-case basis with our customers; conversations which also feature a committee of selected retired entrepreneurs.”
Building on success
Spuerkeess is keen to encourage women and all would-be entrepreneurs to consider taking over existing businesses. Unlike a startup, a going-concern already has a reputation, a business plan, experienced staff, loyal customers, supply chains and demonstrated resilience, all of which can be built upon.
“Given these foundations there is less risk than when starting a new company, where business leaders must often learn by doing,” said Mr Basher. The purchaser will add their personal outlook and fresh entrepreneurial flair to this structure. Academic studies and business experience shows that bringing a new outlook – particularly from a female perspective – adds to the innovative potential. “Spuerkeess, via its Business Transfer Division, supports all entrepreneurs – regardless of their background – throughout the journey of taking over a company,” he added.
Cultural fit
Moreover, there are numerous opportunities. There are more than 30,000 SMEs in Luxembourg, and many are family owned and managed by people nearing retirement age. “These businesses are an important part of the national economy, contributing growth, innovation and employment thanks to the dynamic entrepreneurial spirit of their owners,” said Mr Basher.
A takeover can be managed in six months, but ideally from the seller’s point of view, at least a couple of years are recommended for the whole process. It is important that when an owner/manager is considering retirement they find a purchaser for their business who shares their values. “This can be an emotional time for owners who have given so much to their company, its staff and customers. It is best to take time to plan, and the Business Transfer Division can help at every stage of this journey,” said Mr Basher.
To find out more about the specialist business transfer support available at Spuerkeess, please contact johny.basher@spuerkeess.lu.