After many years of hard work and most likely plenty of sacrifices, many family business owners look to reap the rewards of their efforts over the years:
Sometimes exit strategies or exit planning rather than succession planning is needed as there isn’t a next generation of family members who are ready, willing or able to continue the family business. In this case, you may need to consider employing non-family members as managers or selling the business to external parties. The non-family buyers could be employees, competitors or other parties wishing to enter your industry or market.
You may be anxious about the sales process or even question if it is the right thing to do.
A common response from many people in business today is that they always have an eye on the market for the right offer for their business. There are many things to consider, but also some clear objectives that you can put in place so that you’re comfortable with the reasons for the sale and the return from it. Your objectives could include:
For many, the sale of a private company is the culmination of a lifetime’s work. Often, this will be a once-in-a-lifetime transaction – with just one opportunity to get it right. Sale process steps include:
Fully preparing the business for your exit is not a small task – it’s a stressful and risky undertaking, with tax implications as well – and many family business owners benefit from professional advice.
As you contemplate this major life change and consider your options to exit the family business, you need to understand what drives value in business in today’s market and what potential buyers and investors are looking for.