Selling or transferring your business internally rather than externally generally offers a distinct advantage: you already have an identified buyer or successor with a working knowledge of the business and an interest in acquiring it.Read More
Topics: Selling Your Business Internally, Internal Transfers, succession planning, internal sale of your business, choosing a successor, selling to your employees, Grooming a successor, passing business to my family'
A recent article in National Driller magazine, “How Can a Driller Ever Retire? ESOPs May Help,” highlights the fact that business transitions are an issue across industries in the U.S. And while many people think they may sell their businesses externally, an internal transfer or sale may provide a better option for owners to achieve their financial and non-financial long-term goals.Read More
Why are Family Businesses important to our economy? 95% of businesses in the US today are family-owned or closely held. 80% of those businesses have 20 or fewer employees. However, these businesses are responsible for contributing over 45% of our GNP (Gross National Product)! These vital members of our communities generate more new products, create more new jobs, and contribute more to your local communities than their corporate counterparts! However, almost 35% sell or liquidate – often failing to realize their intended value.Read More
Business owners put off internal transition planning for many reasons, as we talked about in Top 3 Reasons Why Business Owners Don't Do Transition Planning. As a business owner, you've spent much of your life building a successful business, and it's probably difficult to think about passing it on to someone else. And oftentimes, owners become overwhelmed just thinking about it. However, the reality is, you will leave your business one day, whether it’s voluntarily or not. You may leave due to retirement, disability, or even business failure. Unfortunately, many business owners believe they can worry about a business transition plan at another time only to find out the hard way that later is too late.
Family business owners often think the internal transfer process will be an easy one and the pieces will just fall into place but usually find out quickly this is not the case. Working with an advisor who is uniquely trained in business ownership transfers can help guide you through the process of developing and implementing a successful internal transition plan. An advisor can help you to:
If you are considering selling your business, you are probably seeking information regarding the advantages and disadvantages of the various selling options. There are advantages and challenges in any type of sale, but selling internally has many unique advantages that we will explore in more depth here.
Topics: Internal Transfers