Buying or selling a business in France: the key steps

Taking over a grocery, a restaurant, a hair salon or a shop is a big project — often the investment of a lifetime. Selling your business is just as important. This guide explains the key ideas and steps. It does not replace advice from a professional (lawyer, notary, chartered accountant), which is strongly recommended for this kind of deal.

1. What you are really buying: the fonds de commerce

In most cases you do not buy the building but the business itself (fonds de commerce). It includes the customer base, the trade name or sign, the right to the lease, equipment, furniture and sometimes stock. The premises usually belong to another owner, with whom a commercial lease is in place.

Another option is buying the shares of the company that runs the business. The legal and tax consequences are different, so professional advice is essential to choose.

2. For buyers: the checks you cannot skip

Accounts and trading figures

Ask for the balance sheets and profit and loss accounts of the last financial years, and monthly turnover. Have them reviewed by a chartered accountant, who will check that the figures are consistent and show the real profitability and costs. Be wary of a seller who talks about “undeclared” turnover: you can never prove it or legally rely on it.

The commercial lease

The lease is often the most valuable element. Check:

• how long it has left and the renewal conditions;
• the rent, service charges and review rules;
• the permitted use (destination): it must allow your plans;
• clauses about transferring the lease and carrying out works.

Premises, staff and licences

• the condition of the premises and compliance (accessibility, safety, hygiene for food businesses);
• any employees, whose contracts may transfer with the business;
• specific authorisations: alcohol licence, terrace permit, hygiene standards and so on.

Spend time on site at different times of day to see how busy it really is.

3. Financing

Prepare a realistic financing plan: price of the business, deed costs and registration duties, lease deposit, stock, any works and starting cash. Banks usually expect a personal contribution and a solid forecast. Chambers of commerce (CCI) and business support networks can help you prepare the file.

Think about the first months as well: it takes time to make a business your own, and turnover sometimes dips after a change of owner while customers get to know you. A cash reserve helps you get through this period calmly.

4. How the sale works

1. Agreement in principle, often in a preliminary contract with conditions (loan approval, landlord’s consent…).
2. Deed of sale, ideally drafted by a lawyer or notary. The law requires certain information, notably about the business’s past trading.
3. Formalities and legal publication: the sale is published (legal notice and official bulletin), opening a period during which the seller’s creditors can come forward.
4. Escrow: during that period the price is usually held by a third party (lawyer, notary) before being paid to the seller.

Company formalities are carried out on the official one-stop formalities portal. General information is available on service-public.fr and from your local CCI.

5. For sellers: prepare the sale

• Gather the documents: accounts, lease, current contracts, equipment inventory, licences.
• Get a valuation from a professional, based on profitability, location and the lease.
• Stay discreet: an ad can describe the activity and area without the exact address; share details with serious buyers.
• Know your obligations, such as informing employees beforehand in some companies.

6. Warning signs

• a seller in a hurry who will not show the accounts or the lease;
• a price that does not match the declared trading;
• a request for a large deposit without a written contract or intermediary;
• a lease close to its end with no guaranteed renewal.

Frequently asked questions

Do I need a qualification to take over a business?

For many businesses, no specific qualification is required. Some activities are regulated, though: hairdressing requires a professional qualification, commercial restaurants require food hygiene training, and running a bar requires specific training and a licence. Check the conditions before committing.

How long does a business sale take?

Allow several weeks to a few months between the agreement in principle and the actual payment of the price: financing, the landlord’s consent, drafting the deed and then the period linked to legal publication. Build this timeline into your plans.

Can I use a specialised broker?

Yes, agents and firms specialising in business transfers support buyers and sellers. Read the mandate carefully: length, exclusivity and fees. A broker does not replace the accountant’s review or a deed drafted by a legal professional.

In short

Buy a business on verified figures, a solid lease and a deed drafted by a professional. Take your time, get support and never hand over money without a written agreement.

Businesses for sale are listed in the Property & Business section of TamilMarket (type “Business for sale”). Selling? Post your ad for free.