Selling a family business can be complicated. Here are some things to consider when selling your family business.
The Market
Consider the market to help you determine if now is the time to sell your business. Determining how much your business is worth is important in any decision to sell. Have an outside party determine the value of your business. What you think your business is worth and what the market dictates could be very different. Selling your business may not be an option if the value isn’t there.
Next Step
What will you do after you sell your business? You need to understand what your next step will be. Can a family member run the business after you leave? After the sale goes through, what will family members whom work for the business do? Do you want to retire? Do you want to start a new venture? There is emotional and mental stress that comes along with selling a business. Some business owners begin the selling process and then discover that they are not emotionally ready to sell.
Plan For Negotiations
It is important to know who will oversee negotiations. Many deals that could have been successful fall apart due to poor negotiations. A business broker can be invaluable in negotiations.
Selling a family business can be an emotional process. It can cause significant life changes for not just you, but for members of your family as well. EBIT Associates can help guide you through the selling process. We have personal experience in selling a family business.