Exiting a Family Business
Running a family business successfully means reaching the right balance between the needs of the business and those of your family. This can be particularly difficult when you're planning how the business will carry on after you step down from managing it.
Typically, when a business owner sells, the buyer will pay for the company upfront or in installments over a period of time. But when a family member buys a business, money tends not to change hands right away.
Generally, the children will pay the purchase price over a number of years out of the cash flow of the business. It could be three years, or a lot longer—depending on company cash flows and the financial situation of the parents.
During this time, would you still be involved in the business? Who would be the decision-maker?
Our advice? Employ professionals to negotiate and structure the sale. Selling a family business is a complex exercise, usually taking at least six months, and often longer. Highly technical stages include preparing the company for a sale, tax planning, valuing and marketing the business, negotiating price and other terms (like vendor warranties and indemnities), performing due diligence, and closing the transaction
The first step is to download or buy a copy of our Exit The Family Business book - 'How to transform your business built for lifestyle to one built for sale' - which happens to be a best-seller on Amazon. The book can literally become your bible to selling a business successfully from start to finish.
Exit The Family Business
EBOOK or HARD COPY
'How to transform your business built for lifestyle to one built for sale' is an Amazon best-seller & available for kindle.
How It Works
It's time to face the truth. If you don't plan your exit correctly, you could end up working until you die. Your journey to a successful sale and increasing the value of your business by 30-50% starts with taking our Exit Valuation Survey. This tells us exactly where you are now, the exact performance of your business, and what you need to do to improve. You can access your buyer Risk Report and speak to our analyst team on a complimentary call to discuss your results, increasing value and exit options.
TAKE THE SURVEY
Discover how your business scores in
the 7 key drivers of valuation
ACCESS RESULTS & ANALYST
Understand the risks a buyer sees
when valuing your specific business
INCREASE BUSINESS VALUE
Implement the "7 Pillars Of Value Creation" and increase your business value
*The Lower Middle Market is comprised of businesses worth $5-$30 million, typically having EBITDA of $1 million - $4 million.
The 7 Pillars of Value Creation is our name for our work as Business brokerage services and related consulting pertaining to business sales, mergers, acquisitions and business valuation. Exit The Family Business the downloadable guide and any accompanying assets or affiliates are provided for informational and educational purposes only. It is not intended to provide tax, accounting or legal advice, nor is it an offer or solicitation to buy or sell, an endorsement or sponsorship of any company, security or fund. Certain owners, officers or affiliates may be associated with investment firms and may make referrals from time to time for such services, but this does not constitute investment advice, nor should it be construed as Exit The Family Business being in that business. We always suggest you seek professional advice. Past results are not a guarantee of future results.