Selling your family business to another family
Family businesses present a unique selling situation – it’s often not just about price. The protecting of reputation and employee jobs are just a few of the considerations that are felt more keenly. What the buyers intend to do with the business is a matter of great concern… and keenly negotiated. Buyers come under far more scrutiny than they would in other acquisition scenarios. And it can sometimes be extremely tricky to get various family shareholders to agree on a buyer, price and terms. Bruce Hakutizwi takes a look at how to sell a family business.
If you currently own a family business – especially one that’s been built from the ground up by two or more relatives (a fampreneur business) – that you’re considering selling, you’re at a difficult crossroads.
No doubt you feel the unique combination of pride and responsibility of knowing your efforts aren’t just providing for yourself, but for a portion (if not all) of your extended family as well. You may have a number of employees relying on you to make the right decisions before and during the sale, and many of them are probably family as well.
All in all, you have a serious responsibility that goes beyond the simple question of business valuation and negotiating a profitable deal. After all, this isn’t just a financial transaction.
This is personal. Read more at us.businessesforsale.com