Buyers · Takeover candidates · Investors
Acquiring a business in judicial reorganisation or liquidation: your lawyer in Cannes
Are you considering acquiring a business, a fonds de commerce (business assets and goodwill) or assets as part of judicial reorganisation or liquidation proceedings? I assist you with reviewing your project, preparing your offer and the steps involved in the acquisition.
Support for buyers, prospective acquirers and investors.
Examples of acquisitions supported by Maître Claire SUN
The transactions presented below were supported by Maître Claire SUN within judicial reorganisation or liquidation proceedings. They illustrate the variety of sectors, acquisition prices and acquisition projects involved.
Bar and tobacco shop
Acquisition of a fonds de commerce in judicial liquidation.
Transfer price€50,000
The business was sold five years later for €290,000.
Menswear
Assistance to employees acquiring the brands and stock of a company in judicial reorganisation.
Transfer price€225,000
The company’s turnover at the time was approximately €3.5 million.
Surface treatment and industrial painting
Assistance with an acquisition project.
Transfer price€150,000
The company now generates annual turnover of more than €1 million.
Car repair garage
Acquisition of a business activity in judicial liquidation.
Transfer price€80,000
The company’s turnover at the time was approximately €1.4 million.
Restaurant
Acquisition of a fonds de commerce in judicial liquidation.
Transfer price€210,000
The company’s turnover at the time was approximately €950,000.
Brasserie — judicial reorganisation
Acquisition of a brasserie, including 11 of its 12 employees.
Transfer price€300,000
The company’s turnover at the time was €3 million.
These examples illustrate the variety of projects supported. The prices and developments mentioned are specific to each transaction and do not predict the outcome of another acquisition.
Acquisition opportunities across a wide range of sectors
Acquiring a distressed business can involve many sectors: retail, food service, hospitality, crafts, industry, construction, transport, services or new technologies.
Depending on the case, opportunities may involve a company, a business division, a fonds de commerce (business assets and goodwill), such as a restaurant, hotel, shop, hair salon or bakery, or assets sold separately.
These assets may include real estate (industrial premises, offices or land), professional equipment, industrial or IT equipment, vehicles and stock, as well as intangible assets such as trademarks, domain names, software or licences.
Each opportunity has a specific scope of acquisition, which should be analysed to identify precisely the assets being sold and the conditions of their acquisition.
The sale price may sometimes be lower than in a conventional sale. It should nevertheless be assessed alongside the investment required, working capital and financing needs and the legal, employment-related and operational constraints associated with the acquisition.
Identify an acquisition opportunity
Some opportunities to acquire distressed businesses are advertised in publicly accessible listings.
However, identifying a business to acquire is only the first step. The merits of a transaction depend in particular on the scope of the acquisition, the situation of the business, the terms of the sale and the legal and financial risks.
The firm assists you in searching for and selecting opportunities suited to your project, analysing them and preparing your acquisition offer.
Prepare and build your acquisition offer
- Step 1
Analyse the project
Analyse the proposed scope, available documents, costs and risks in light of the buyer’s or investor’s objectives.
- Step 2
Prepare the offer
Build an offer consistent with the project and gather the required supporting documents, including evidence of financing.
- Step 3
Support the procedure
Assist with exchanges with the insolvency practitioners and the procedural steps of the acquisition, within the applicable framework and timetable.
Maître Claire SUN, lawyer admitted to the Grasse Bar · 21 boulevard de la République, 06400 Cannes. Discover the firm
Business acquisitions: what are the respective roles of intermediaries and lawyers?
Listings for the sale of companies, fonds de commerce (business assets and goodwill) or assets in judicial reorganisation or liquidation are published notably on the websites of judicial administrators and judicial representatives, as well as on specialist platforms. These listings are public and can be consulted directly by prospective buyers, without any obligation to go through an intermediary.
Certain professionals, including estate agents and commercial transaction intermediaries, may assist with finding opportunities or introducing the parties, within the limits of their authorisations.
Finding a business to acquire does not, however, mean being able to provide legal support for its acquisition.
An acquisition within insolvency proceedings requires examination in particular of the assets and contracts concerned, any employment-related obligations, legal risks, financing needs and the deadlines imposed by the proceedings.
Providing legal advice and drafting legal instruments for others, when done habitually and for remuneration, are subject to specific legal conditions. Likewise, the ability to represent a candidate before the court in certain situations does not, in itself, confer general authority to carry out these activities.
A lawyer assists the buyer with analysing the matter, defining the scope of the acquisition, preparing the offer and taking the legal steps associated with the proceedings.
The issue is therefore not only finding an opportunity, but knowing precisely what is being acquired, on what terms and with what commitments.
Tell us about your acquisition project
Are you looking to acquire a shop, a business or assets? Write to the firm with the type of activity sought, your preferred geographical area, your acquisition budget and the funds available to start or continue the activity. Please also include your contact details and availability for a follow-up.
This information will help the firm understand your project and contact you to discuss any opportunity brought to its attention that may match your criteria.
Your name, email, sector and budget are required. If you choose “Other sector”, please specify it. You may select “To be specified” or “Budget not yet defined”.
Frequently asked questions
Frequently asked questions about distressed business acquisitions
These answers provide general information only. Any legal assessment depends on the facts, documents, contracts and applicable legal framework.
Can a business in reorganisation or liquidation be acquired?
Yes. Depending on the procedure, the situation of the business and the scope concerned, a candidate may consider acquiring all or part of an activity or certain assets. The applicable framework, timetable and conditions must be examined for each matter.
What is judicial liquidation in France?
Judicial liquidation (liquidation judiciaire) is an insolvency proceeding opened when a business has ceased payments and recovery is clearly impossible. It generally organises the cessation of the business and the sale of its assets; temporary continuation and a transfer of all or part of the activity may nevertheless be ordered.
Official source in French: judicial liquidation of a company
What is judicial reorganisation in France?
Judicial reorganisation (redressement judiciaire) is an insolvency proceeding for a business that has ceased payments when recovery appears possible. An observation period is used to assess the position and prepare an outcome: a reorganisation plan, a partial or total transfer of the activity, or liquidation if recovery becomes impossible.
Official source in French: judicial reorganisation of a company
Who does Claire SUN assist?
Claire SUN’s support for the acquisition of distressed businesses is directed towards buyers, prospective acquirers and investors wishing to assess an opportunity or prepare an acquisition project.
When should a candidate seek legal advice?
It is preferable to seek advice sufficiently early once the project becomes concrete. Insolvency proceedings involve specific timetables and constraints that make advance preparation important.
Can an intermediary represent me at the hearing?
The rules depend on the court, the procedure and your status. Before the French commercial court (tribunal de commerce), in proceedings under Book VI of the Commercial Code, parties are not required to appoint a lawyer and may be assisted or represented by a person of their choice; a representative who is not a lawyer must provide evidence of special authority to act (Article 853 of the Code of Civil Procedure). Before the French judicial court (tribunal judiciaire), in the same matters, a party who does not appear in person may only be represented by a lawyer (Article R. 662-2 of the Commercial Code). The court concerned, your status and the authority required must therefore be checked.
Article 853 of the Code of Civil Procedure · Article R. 662-2 of the Commercial Code
What should be assessed before submitting an offer?
The assessment may cover in particular the scope of the activity or assets concerned, contracts, employment matters, legal constraints, the available financial information and the conditions for carrying out the project.
Which documents should a takeover candidate prepare?
Depending on the proceedings and the requirements of the matter, the takeover candidate should in particular gather:
- identification details, professional background and references;
- a presentation of the takeover project and proposed scope;
- evidence of financial capacity;
- the financing plan and available supporting documents;
- the proposed terms and conditions of the takeover;
- information concerning the continuation of the business and, where applicable, the preservation of employment.
Maître Claire SUN identifies the necessary documents with the buyer and ensures that the file is consistent with the takeover strategy and the requirements of the insolvency proceedings.
Further information
Maître Claire SUN, founder of Cabinet SUN, supports you with your project.
