Help, any advise on how to sell a business in Zürich

Finance, Taxes, Banking, Insurance and Retirement
1
Open to ideas, please.

I have spoken to a brokerage firm but was unimpressed with their service, and have been subsequently advised that this would not be a good route to use.

Has anyone got any experience in selling their business here?

I'm thinking trade forums and NZZ on Saturday.

Any thought very welcome.

2
If you provide some information on the business you might receive some suggestions. Helpful details would include a description of the business, annual revenues and profits, business location, what you're selling (assets or a company), why you're selling etc.

3
Some quick thoughts, depends upon legal form and scale

1.) If an AG or GmbH with shares held by one or few people, might be able to sell. If unincorporated or Einzelfirma, probably can't sell it

2.) If active business with multiple customers, assets, bank account, tax and MwSt numbers, etc, might have value. If just an "concept", or hold inventory but no customer base, sales, etc, probably can't sell as business, only clear goods for what you can get

3.) Some thoughts on "how" assuming you have GmbH/AG, customer base, and registrations (i.e. an on-going concern)

- Brokers: expensive, but can work if you sift the chaff from the wheat. Need to talk to 20+, ask for success examples, might cost you up-front cash and big % of proceeds

- Treuhands: If business is serving very local market (neighbourhood focused) put sign on window and send letter with short profile/numbers to local Treuhands

4.) My guess is by far best option is to identify competitors who might want to sell in CH, people who already know your business, people you've met who say "I wish I had a business like yours", people in your industry/trade groups (via ads), etc and seek to sell into someone you know.

Good luck! If you can share more details, maybe some more concrete ideas will come up from Forum

4
I have read through all relevant looking threads and can't find the answer to my question.

Has anyone got experience of selling a small business in Switzerland?

I have been advised by my lawyer not to go with the agencies, I am trying advertising in NZZ, any other ideas?

All advice gratefully received.

Thanks

5
If smallish business (e.g. less than million deal) the fees for going through agencies probably doesn't make sense (or cents....)

Likely best avenue (esp. if service business w/out fixed assets) is getting some "word of mouth" within your local Gemeinde/Trade Association/etc plus proactively targeting competitors who might want to pick up your client list. Another option: selling to one of your employees

Assume you are selling a Gmbh or AG with clean accounting and tax situation - selling sole proprietorship or unincorporated venture much tougher.

PM if want more ideas - and persevere! Best of luck to you on this.

6
Personally, if I was looking for a business to buy, I would look in a trade newspaper, not the NZZ.

7
Most business sell for a multiple of profits, fixed assets are probably almost irrelevant.

8
Well if they sell for a multiple of profits I'm going to be quite well off, I just need to find the right buyer now!

9
Should I translate that into English for you?

10
Thanks for your kind offer, but I believe the answer is quite clear. But if it is not, let me be clearer. My business is very profitable, therefore selling for multiples of profit will be a satisfying experience.

11
Using a multiple of profits is one of many ways for calculating the price for selling your business. This may or may not be appropriate for your type of business, depending on whether the buyer will be able to generate similar profits going forward: Say you are a well-versed craftsman and you clients come to you because of your skills - rather unlikely that a less capable buyer will be able to keep your clientele and thus, your profits. However, if you have created a business which thrives on its location, but not necessarily your personal skills it will be easier to demand a higher multiple of profits.

You have not yet indicated which area your business is operating in, which will determine possible channels for selling your business.