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Transeo E-newsletter October 2015 : News from Transeo and its Members
IN THIS ISSUE
NEWS FROM TRANSEO:Baby newsThe Transeo-team wants to congratualate Marie and her family with the birth of Gabriel. The little boy was born on the first of August. Both Marie and her son are doing very well.
New MemberWe would like to welcome our new Transeo members
Legaltree, mr Linda Mantel en mr drs Bart Wilton. Legaltree is an innovative Dutch law firm, in which seasoned partners have joined their forces. As a team, but also when acting solo, Legaltree partners deliver top performance. Each Legaltree partner has acquired many years of experience and expertise at leading law firms. Legaltree's over 20 partners provide all legal services relevant to entrepreneurs. With 8 dedicated corporate/M&A partners, Legaltree has vast experience in all aspects of Dutch and international business transfers. www.legaltree.nl/en, linda.mantel@legaltree.nl, bart.wilton@legaltree.nl Your news in the E-newsletter?As a Transeo member one of your privileges is that you can have your news published in the Newsletter. This E-newsletter will be sent to over 5.500 key players in the field of business transfer. New working groupEvery two years Transeo is responsible for coordinating a new European study. One of Transeo's missions is to exchange good practices in different areas of business transfer, in order to improve business transfer conditions at European scale and develop the expertise of its Members. The new study will contern external growth by acquisition. Beginning of October, the Board of Directors will meet up in order to prepare the start of this new study. Following, more information about the content and the next steps will be communicated to the Transeo members. A working group will be organized soon to deal with this topic. Further information about this working group will be send asap. Update EU4BTDue to the General Assembly in May we were able to make some big steps for EU4BT. Both the market based criteria report as well as the evidence based report have been updated and reviewed. Transeo on youtubeThere are many good reasons why to become a member. If you missed the beginning of Transeo you can check this video If you have questions about becoming a member, please contact us Tell a friendAs you know Transeo is non-profit organization. That's why we ask our partners to help with the visibility of Transeo. We are always open to meet with your business partners to tell them about Transeo. Or maybe you want to send this E-letter to some partners, please feel welcome to do so. Do you think Transeo is interesting for one of your business-partners of friends?
NEWS FROM TRANSEO MEMBERSHU Business School Utrecht- Lex van Teeffelen Fast Growing Impact of Business Transfers on the Dutch EconomyFast Growing Impact of Business Transfers on the Dutch Economy Business transfers are important triggers for innovation, renewal and economic growth. The first Dutch study on the economic impact was performed in 2011 (Van Teeffelen, 2012). The situation of 2011 is compared to the present situation. The scope of research is SMEs up to 100 FTE. The total number of SMEs in the Netherlands is 1,32 million of which two thirds are self-employed firm owners. The average firm size of SMEs is 3,2 FTE. The total Dutch labour market in FTE is 5,75 million, 60% provided by SMEs. A random sample of 4350 SME owners was drawn from the panel of the Dutch Chambers of Commerce. 2428 owners participated in this study. The size and characteristics of the new sample are similar to the 2011 sample. Both samples are representative for the SME population, though women, younger entrepreneurs and lower educated entrepreneurs tend to be under represented. The number of firms for sale has increased from 23.500 in 2011 to 55.700 firms at the turn of 2014. 10% of all firms with employees, 46.000 firms, are for sale now. The majority of the firm owners indicate that retirement is their main motive for selling. Now 7,1% of all fulltime jobs are at stake with business transfers. The quality of firms for sale has increased compared to 2011. The number of employees has grown from 5,8 to 7,3 FTE. Selling owners have more prior experience with selling or buying firms than in 2011, the firms are less dependent on the owner. The initial price for sale seems to have dropped. Firms for sale are as innovative and even more export oriented than firms that do not come to the market. Finally the success index for sale - constant or growing turnovers while having a wide customer base - increased from 44% to 53%. Distressing though is the increase of firm owners age at the time of succession from 52 years in 2011 to 60 years now 2014/15. More than 60% of the firms are family firms, generally postponing succession longer and needing more time for succession than non-family firms. The author signals market failure in higher education to provide for successors and takeover entrepreneurs. Furthermore succession support services for micro firm owners are inadequate and expensive. There is also a total lack of access to (takeover) financing for smaller firms in the Netherlands, substantiated by recent reports of the Worldbank, the ECB and the European Commission. Combined with the strongly increasing age of entrepreneurs in business transfers, the estimation is that 30% of all firms in succession will fail and end up in liquidation. The consequential loss of jobs, turnover and assets have been calculated from balance and profit sheet information provided by the SME owners. Compared to 2011 these loss of jobs has doubled, the loss of revenue and assets has fourfolded. Key recommendations to increase innovation and to limit negative economic consequences are:
Cepor- Mirela AlpezaIn May 2015 CEPOR conducted first research Business Transfer Barometer in Croatia. In this research 200 entrepreneurs that are 55 years or older were interviewed. The objective of the research was to identify the level of their awareness on the complexity of business transfer issues and the level of their preparedness for the business transfer process. Luxvaluation- Jean-Luc Illi-Jacob The thorny issue of acquiring and selling businesses in LuxembourgA wide variety of opportunities No company transfer without prospective buyers One of the recommendations to improve this situation is an awareness campaign by the Ministry of Economy seeking to sensitize SME's to the need for preparing their business transfers. An immediate solution A customized matching process brings sellers and buyers together through selective interviews. This service represents a substantial added value for sellers, who are deeply involved in and absorbed by the daily operational management and corporate development. To determine this, Luxvaluation disposes of an internal pool of skills completed by an external network of experts who can evaluate all companies and intellectual property internationally. It should be remembered that Luxembourg's social dialogue processes are deeply anchored. Luxembourg has little debt, its social coverage is optimal and its pension scheme compares favourably to that of its neighbouring countries. Social charges are low and the VAT rate is 17%. The overall tax rate on companies is around 30%, depending on the municipality where a business is established. There is also the possibility of a tax credit related to capital expenditure. These elements should motivate potential buyers to seek out acquisition opportunities in Luxembourg. Luxvaluation also offers support in selecting acquisition targets with predetermined characteristics in this beautiful country. M&A Strategie GmbH- dr Hartmut Schneider German Broker extends its business to comprehensive consulting services in the Pre & Post M & A Phase:Frequently, it is hard to sell a company due to a lack of attractiveness for potential buyers. Reasons might be outdated products, missing innovation, inappropriate organisational structure, etc. Tax consultants made a good work to reduce profit in order to achieve a low tax rate for the owner. With our own team backed up by a consulting and interim manager network of highly competent and qualified experts in the fields:
In the 1st step consultancy is focused on the Pre M & A Phase before the sale of the company. Our examination starts with a general Company and/or Strategy Check - an examination instrument elaborated by M & A Strategie GmbH. Final target is the sustainable increase of profit of the company which results in a higher selling price for the owner. CEROS WORKSHOPThe first worshop on family business governance and financing organized by CEROS, the Paris Ouest Nanterre La Défense research lab in Management Science, was held last July 9 in Paris. COMING EVENTS:Policy Forum on Business Transfer The Policy Forum on Business Transfer will take place the 18th of November at the preconference day of the RENT Conference in Zagreb.
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