Family Businesses Are Different

Family businesses are different. Although an estimated 80% to 90% of all businesses are family owned, few are properly planning for when it comes time to sell. According to a study, 72% of family businesses lack a developed succession plan. This is a formula for confusion and potential disaster.

Here are some key points that family business owners should consider when selling a business.

  1. Observing confidentiality is vital when selling your business.
  2. If maintaining the jobs of family members is a concern, it may be necessary to lower your asking price.
  3. Family members who stay on after the sale of the business need to realize that they no longer are in charge. After the sale of the business family members will have to answer to new management, an outside board of directors, and outside investors.
  4. Family members should appoint a single family member to speak for them in the negotiation process. This way there is no confusion or poor decision making.
  5. It is critical that the team you hire, Your lawyer, accountant and business broker, have experience and a proven track record.
  6. No on-site meetings with potential buyers.
  7. Every family member needs to be in agreement regarding the sale of the company.
  8. Every family member must be in agreement concerning the sale price.


Succession planning is a big part of every business owner’s business plan. Whether you are passing down your business to your children, or looking to sell your business to an employee or an outside party, there is a lot of planning that needs to be done.  At EBIT Associates, the years of hard work and dedication you have put into your business should be rewarded with a top dollar sale. EBIT will work with you to find the right buyer, who, under the right circumstances, is ready to make the right deal.


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