Despite the expensive cost of living and high salaries, Switzerland remains a very interesting place to invest in SMEs.
Some key reasons, why investing in Swiss SMEs can be a very good move:
– Stable and simple legal environment, which can be easily understood and predicted
– Reasonable acquisition prices for SMEs
– Balanced work law
– Easy access to skilled professionals
– Safe environment
– Quality of living
– Good access to capital
This environment fits very well for the acquisition of companies realizing at least CHF2-3M of turnover up to CHF50M or so.
However, there are some key requisites if one wants to maximize its chances to invest in Switzerland:
– For acquiring SMEs, it is better to come with its own management solution and, ideally, the future management will negotiate directly the acquisition of the SME
– Although most of the businesspeople speak at least some English, it is always better to speak at least one of the 3 main Swiss official languages – German, French or Italian – ideally, the one used in the targeted region.
– Interpersonal relationships are very important in Switzerland and require time to be built. They come together with trust, which is central in the Swiss way of doing business.
– Being accompanied or advised by a local advisor can be a good idea to get access to good value deals and to negotiate smoothly and timely.