Business transfer in the construction industry: why an employee buyer is an option to explore

According to the CCI*, 44% of sellers fear not finding the right buyer, and more than half want to be reassured about the buyer's behavior (57%), but also about the future of the company (56%).

Lacking a buyer, some are closing their doors, putting valuable know-how and locally based jobs at risk.

Among the possible options, employee takeover is often underestimated. However, it can prove to be a winning solution for all parties, provided it is well prepared and supported. The story of Baptiste Lemarchand, an employee who became the buyer of the family masonry business Perdoux, founded in 1967 and located in Saint-Pryvé-Saint-Mesmin (45), provides a concrete illustration of the advantages of such an option and the conditions for success.

Internal transmission: a reassuring and efficient option

When the subject of transfer arises, if the manager's children do not wish to take over, or if no external successor is identified, the option of transferring to an employee remains. Within the Perdoux company, it was during an annual professional interview that Baptiste Lemarchand, then a site manager, shared his plan to start his own business.

For Baptiste Lemarchand: "At first, I thought I'd go it alone. But to build a business the size of Perdoux, it would have taken years of work and sacrifice. Taking over an already established structure, with a loyal clientele and a local reputation, seemed much more appropriate to me."

This solution also quickly became a success because it guaranteed operational continuity: the buyer was already familiar with the construction sites, clients, and teams. This proximity reassured all stakeholders—employees, clients, suppliers, and banks—and made it possible to envisage a smooth transition.

The support involved mapping out the path, both legally and financially, and human resources-wise, by exploring different takeover scenarios. The goal was to reconcile the manager's retirement preparation with the employee taking over's gradual increase in responsibility.

Dare to take the plunge: the key role of education and advice

For the employee concerned, moving from site manager to manager represented a considerable challenge. He already had solid field experience and team management, but the responsibility of managing the company and its ten employees represented a significant step.

Financing was another source of tension. Some banks were cautious about a buyer from the field, unfamiliar with administrative management. In this context, the chartered accountant was a valuable ally in supporting and encouraging the employee buyer in his project, but also taking the time to explain the various legal and financial frameworks, detailing how a takeover holding company works, securing the structure, and, generally speaking, answering all questions. This educational approach allowed the buyer to confidently plan for his future role as manager.

Anticipate and structure: the conditions for a successful recovery

The transfer was not carried out all at once, but rather organized in stages. A minority stake was first taken, allowing the employee to become a partner, participate in decision-making, and become familiar with management. The full takeover took place upon the manager's retirement.

This gradual process helped secure the project. The buyer was able to test his new role, train to develop his administrative and managerial skills, and, above all, strengthen the relationship of trust with the banks and partners. Initially, two employees volunteered to take over. Ultimately, one of them withdrew, but the transfer had been sufficiently prepared to ensure the project remained solid and continued on track.

From the outset, every effort was made to ensure that the acquiring employee was fully identified as the future leader. When the time came to take over the company, the handover was seamless, even in the eyes of the entire ecosystem. This anticipation removed any uncertainty and ensured smooth continuity.

For Baptiste Lemarchand: "Today, I appreciate how lucky I was to have been able to take over an already solid company, surrounded by loyal customers and competent teams. This handover allowed me to assert myself as a leader while preserving the legacy built by my predecessor. The trust established with employees, customers, suppliers, and banks was decisive in successfully completing this step. But none of this would have been possible without the support of my accountant, who was able to support me, secure the setup, and give me the keys to fully assume my new role."

Employee takeovers are a concrete response to the major challenge of business transfer in the construction industry. For the transferor, they ensure the sustainability of an entrepreneurial story and the preservation of jobs. For the employee, they represent the opportunity to become a manager with a proven model, a loyal customer base, and competent teams.

But you still need to plan ahead early enough and surround yourself with the right advice! Tailored support, education, and planning are the keys to success. Perdoux's experience demonstrates that this option, when well-prepared, can offer a solid and secure future to both the company and its buyer.

* Source: https://www.cci.fr/ressources/reprise-dentreprise/le-mois-de-la-transmission-reprise-dentreprise

Tribune by Bruno Rouilllé, Chartered Accountant Associate at ORCOM (LinkedIn).