The articles L 237 – 1 following the business code, introduced to law on 2nd August 2005 in favour of SMEs, ensure a new type of contract: the lease of stocks and shares.
This new system is interesting for anyone who wants to sell their business.
This method directly interests anybody who wishes to sell their company.
Indeed, the progressiveness, resulting from a rental contract, is in the interest of the two parties. It allows the seller to remain in control and keep revenues for a determined time period and allows the buyer to benefit from a type of trial period, which is favourable for the success of the sale.
Combined with an option to buy, this lease will become a true method of progressive sale.
Staggering the sale period lowers the risk connected with the evaluation of transferred assets and the sudden appearance of unknown liabilities.
Firstly, it allows a buyer finding it difficult to find finance, because of insufficient guarantees, to take control of the business until they do so.
After having proven their management ability, it will be easier to claim for finance without a guarantee.
A buyer lacking finance can use a bank, which will take shares and rent them for a long period.
This arrangement can of course also be considered with a capital investor.
Next, renting will allow the seller to avoid the possible negative effects of a liability and asset warranty.
Company shares, which are not quoted on the regulated market, and partnership shares of a limited liability company, which are liable to corporate taxes, can be the object of such a contract.
Regarding the quality of contractors, the lessor can be a person or institution. There are no conditions regarding the length of time the lessor has the shares.
On the other hand, the tenant can only be a person.
This new technique will therefore interest all SME directors wishing to progressively sell their business in the best way possible.