Looking to sell your family business?
‘Family’ here is the operative word. In a sell-side event, where the business has family involvement, the execution of the sale can take on different complexities.
Whether you are looking to transition ownership to the next generation of your family, members of management or find an outside buyer, there are a number of important steps that you need to take in order to successfully sell your business–to protect its legacy.
Why should you consider selling a family business?
There are a number of reasons why you may want to consider selling your family business. Perhaps you are looking to retire or move on to other opportunities and need the funds from the sale of your business in order to do so. Or perhaps there is tension within your family that is making it increasingly difficult for you to manage and grow the business successfully.
Whatever your reason for wanting to sell, there are a number of factors that you will need to consider when contemplating this major decision. These might include determining the value of your business, assessing current market conditions and trends, identifying potential buyers, and developing a plan for managing the ownership transition.
If you decide that selling your family business is the right choice for you, it is important to work with a trusted and experienced partner who can help you navigate the process, from preparing your business for sale to closing the deal. With the right guidance and support, you can rest assured that you are making the best possible decision for yourself, your family, and your business.
Selling a family business – where to start
When selling a family business, it is important to start by understanding the various factors that can impact your success. Some key considerations include developing a pricing strategy, building a marketing plan, and tapping into your network for support.
Here’s a quick guide to start.
The price tag
To begin, you will need to establish an appropriate valuation for your business based on current market conditions and industry trends. You may also want to seek the advice of a professional mergers and acquisition specialist, to get an accurate valuation of your business.
Once you have determined a suitable price for your business, it is important to develop an effective marketing plan that will help you generate interest from potential buyers. This may involve reaching potential buyers or contacting private equity firms..
Ask for help
If you are ready to sell your family business and need help navigating this process, consider working with a trusted advisor who can provide expert guidance and support throughout the selling process. With the right planning and preparation – and the right sell-side partner – you can successfully sell your business and achieve your goals in an efficient and effective manner.
Common reasons for the sale of a family business?
There are a number of common reasons why family businesses may choose to sell their company. Some of the most prominent include a desire for financial security, the need for succession planning, and pressures from family members that aren’t in the business. Additionally, some family businesses may simply be ready for a change, having achieved their original business goals and no longer having the energy for continued ownership.
Whether due to external pressures or internal factors, it is important for family businesses to carefully consider all potential motivations before deciding to sell. This requires an in-depth understanding of the current market landscape, as well as careful evaluation of the strategic options available to them. With careful planning and strategic decision-making, family businesses can successfully navigate the sale process and ensure a successful transition of ownership.
5 guidelines to follow before selling a family business
Selling a family business can be an exciting and challenging process. To ensure that your sale is as smooth and successful as possible, there are several important steps that you should take in advance.
1. Start planning the sale in advance
This will give you time to gather important financial documents and consult with key stakeholders within your business.
2. Consult key stakeholders in the family business
Consult with all key stakeholders in the business, including partners, management, and family members. This is important for understanding everyone’s needs and opinions about the sale, so that you can address any concerns or objections before moving forward.
3. Clean and organize your financial statements
Clean up and organize your financial statements so they are clear, accurate, and easy for potential buyers to understand. This will help ensure that there are no surprises during the sale process and will make it easier to attract interested buyers.
4. Consult a team of business sale experts
Consult with experts who can help guide you through the sale process, such as experienced mergers & acquisitions advisors who specialize in family businesses.
5. Choose a buyer that will prolong the legacy of the business
Choose a buyer that is committed to preserving the legacy and values of your family business, rather than one that simply wants to take over your company for financial gain.
How we can help you sell your family business
Whether you’re looking to transition ownership to the next generation or are interested in selling your business altogether, Destined can help.
With years of experience helping families successfully navigate the process of evaluating their exit options or managing the sale of the family businesses, our team is equipped with all the knowledge and expertise you need to ensure a smooth and successful sale. We offer a range of services including market evaluation, financial analysis, deal structuring, negotiation support, and much more.
Your journey is our journey – we’ll help get you to that profitable sale.
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