Due Diligence: Verifying Cession de Fonds de Commerce (Commercial Lease)
Due Diligence: Verifying Cession de Fonds de Commerce (Commercial Lease)
What essential documents must be scrutinized during due diligence concerning the Cession de Fonds de Commerce (sale of business assets and commercial lease)?
2 Answers
During due diligence for a Cession de Fonds de Commerce in France, a buyer should carefully review the commercial lease (bail commercial) and its terms, financial statements and tax filings, contracts with key suppliers and customers, intellectual property rights, employee agreements, and any existing debts or liabilities. Going through these documents can feel overwhelming, but doing it thoroughly gives you confidence that youโre not walking into hidden surprises itโs the difference between buying a business with a clear, calm head versus being blindsided later by legal or financial headaches.
During a cession de fonds de commerce, a buyer should closely review the sale deed, ensuring assets, goodwill, and liabilities are clearly defined. The commercial lease is critical, including assignment rights, rent, and renewal terms. In addition, scrutinize financial statements, supplier contracts, and employee records to confirm operational and legal continuity.