Who Are They
Exit Options: 1
- Transfer the business to a family member; This represents about 42%
- Sell to partners or your employees (directly or through ESOP); This represents about 17%
- Sell to a third party; 19%
- Partner: 10%
- Wind down business -3%
- Don’t know -8%
Questions To Consider
- Are there one or more family members who want to take over the business?
- Does the family successor have the skills to operate the business and guarantee the return on your investment?
- What are the qualifications and skills someone would need to purchase your business to guarantee the successful transition?
- If you transitioned to your family member, how will your employees, suppliers and customers react?
- What is the most tax-efficient way to pass ownership to family members?
- Will you continue to have a role in the business?
- How will this succession option impact the rest of the family?
Selling to partners or your employees
- Which employees or partners are best suited to purchase your business?
- Do they have funds or access to funds?
- Will you have to finance part of the sale?
- Do they have the management capability to run the business successfully?
- Can the business take on debt for this transaction long term?
- Where will the purchase price come from?
- Do the purchasers have assets as collateral?
- Who are likely candidates in your industry that would be interested in your business?
- Do you want to sell the whole business or only part of it?
- Will the potential buyer have the entire financial resources to purchase the business, or would you be prepared to partially fund their acquisition?
- What is the most tax-effective way to sell your business?